2021 Annual Report
Passion for life
At some point in life, every-
one will need to seek care.
Getinge has a long tradition
of creating innovations that
improve people’s quality
of life – and save lives. It is
one of the most important
jobs in the world.
M
2021 ANNUAL REPORT
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Introduction This is Getinge
The world is facing major
challenges, one of which is the
ability to provide the increasing
world population with safe and
effective health care. People are
living longer and, according to
WHO, lifestyle diseases such as
cardiovascular diseases is one
of the primary causes of
death globally.
Getinge is commied to
ensuring that all people and
societies have access to the
best possible health care. The
company supports its customers
in meeting challenges in health
care and life science by providing
knowledge, technology and
resources to achieve optimal
clinical outcomes and,
ultimately, to save lives.
This is
Getinge
2021 ANNUAL REPORT
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This is Getinge Introduction
About the report
Getinge AB (publ)’s formal Annual Report and consolidated financial statements
comprise the section “Annual Report” on pages 76–143, except for the Remuneration
Report on pages 86–89, and have been audited by the company’s auditor. The
Corporate Governance Report comprises the section “Corporate Governance” on
34–59 and has been examined by the company’s auditor. Sustainability information
is integrated in the section “Strategy” on pages 12–33 and in the section “Sustain-
ability report” on pages 60–73. The statutory sustainability report is defined on
page 60. To provide stakeholders with extensive and comparable disclosures, a
“Getinge Sustainability – ESG Addendum for Annual Report 2021” is also published.
The auditor’s report regarding the statutory sustainability report is presented on
page 74.
Every care has been taken in the translation of this Annual Report. In the event
of discrepancies, the Swedish original will supersede the English translation.
Introduction
2 This is Getinge
4 The year in brief
6 Global value creation
8 Interview with the CEO
10 External trends
Strategy
14 Targets
16 Strategy for sustainable growth
20 Market overview & sales
22 Acute Care Therapies
26 Life Science
30 Surgical Workflows
Corporate governance
34 About the report
36 Getinge’s overall structure for corporate
governance
38 General Meeting
39 Nomination Commiee
40 Board of Directors
47 External auditor
47 President & CEO and Getinge
Executive Team
50 Building blocks in the Getinge corporate
governance model
53 Assurance framework, risks and
risk management
58 Internal control over the financial reporting
59 Auditor’s report on the Corporate
Governance Report
Sustainability report
60 About the report
72 ESG GRI Index
73 EU taxonomy
74 Auditor’s report on the statutory
sustainability report
Annual Report
76 Administration Report
81 Guidelines for remuneration
86 Remuneration report 2021
90 Proposed appropriation of profit
91 Consolidated financial statements
96 Group notes
131 Parent Company financial statements
135 Parent Company notes
143 Auditor’s Report
Other information
148 The Getinge share
150 Multi-year overview
154 Reconciliation of alternative performance
measures
156 Group companies
160 Definitions
162 Annual General Meeting and Nomination
Commiee
162 Financial information
163 Reading guide and distribution policy
163 Contact
Contents
10,700
Employees
25,000
Customers
27 billion
Net sales 2021
132
Sales to no.
of countries
2021 ANNUAL REPORT
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Introduction The year in brief
DPTE®-BetaBag to the US
To meet demand in sterile transfer, Getinge prepared its production facility
in Merrimack, NH, in the US for manufacturing DPTE®-BetaBag. Production
started in December.
Selement agreement
Getinge’s subsidiary Atrium Medical
Corp. entered into a selement
agreement with the plainti’s lead
counsel related to the multidistrict
litigation (MDL) linked to surgical mesh
product liability in the US. An additional
provision of SEK 600 M was made to
account for the selement in addition
to litigation expenses incurred to date.
Getinge Virtual Hospital
Getinge launched a virtual hospital that
simulates a state-of-the-art hospital envi-
ronment online. Similar to the company’s
real-world Experience Centers, visitors can
interact with products and solutions and
contact Getinge representatives.
Flexible remote working
The majority of employees who worked
remotely during the pandemic experi-
enced improved productivity and work-life
balance, which resulted in Getinge
introducing a permanent oer for flexible
remote working.
System for preparation
of bioreactors
In a time when a great deal of medical
research is focused on vaccines,
Getinge launched a new system for
preparation of bioreactors.
Expanded ventilator
offering in the US
In April, Getinge announced that it had
received clearance from the US FDA for
several new soware solutions for the
Servo-u and Servo-n ventilators. In ad-
dition to soware upgrades, clearance
was also received for the new Servo-u
MR ventilator for the MRI room.
HL 40 available for
more European hospitals
Getinge’s HL 40 heart-lung machine,
inspired by a collaboration with perfusion-
ists and designed to increase safety and
ensure maximum uptime in cardiac sur-
gery, became available for more European
hospitals during the year.
AI solution for improved
hospital efficiency
During the year, Getinge upgraded its Torin
OptimalQ solution that helps with the
planning, management and optimization
of surgical procedures. The result, Torin
Artificial Intelligence (AI), significantly
expands capabilities in key areas includ-
ing predicting surgery times, managing
waiting lists and data security.
2021 in brief
2021 ANNUAL REPORT
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The year in brief Introduction
Capital Markets Day
In November, Getinge invited analysts,
investors and the media to a virtual
Capital Markets Day at which the company
presented new financial targets and the
next step of its continuing improvement
process.
Award for sustainability
Getinge was named the winner in the category “Most Sustainable Company
in the Life Science Industry” by World Finance Magazine, which awards
businesses that are taking action to tackle climate change.
New Ethics & Compliance Report
In July, Getinge released its first report
summarizing the company’s activities
within the ethics and compliance area.
25 years of digital traceability
for surgical instruments
T-DOC, Getinge’s sterile supply man-
agement system, turned 25 during the
year. When launched in 1996, it was
the first solution worldwide oering
health care facilities the opportunity
to go from paper-based to fully digital
surgical instrument traceability.
More acquisitions during the year
In the third quarter, Getinge acquired tech-
nologies for biological indicators from the
start-up company Verrix. Talis Clinical LLC,
a US-based leading innovator of High
Acuity cloud-based soware solutions,
was acquired in December. Irasun GmbH
was acquired aer the end of the year to
broaden the oering in ECMO therapy and
cardiac surgery.
New game-changing feature
in surgical lighting
In October, Getinge launched a Volista
VisioNIR feature in Maquet Volista
StandOP – an innovative solution
which allows surgical sta to keep
the surgical light on when performing
open surgeries using NIR fluorescence
imaging systems.
Expanded ECMO offering
Getinge launched the Rotaflow
II Extracorporeal Life Support
(ECLS) System, together with the
Permanent Life Support (PLS)
Set, which oers up to 14 days
of cardiopulmonary support in
a compact, portable, safe and
reliable manner.
Getinge Ethics & Compliance Report
Passion for life
FIRST EDITION
JULY 2021
2021 ANNUAL REPORT
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Introduction Global value creation
Global value
creation
Getinge’s role is to provide
value to its stakeholders.
Through innovation and
collaboration, health care
and research can be more
effective and productive
– which create value
for society at large.
Collaboration
Excellence
OpennessOwnership
VISION
To become the world’s most respected and
trusted medtech company
MISSION
Getinge provides innovative products and solutions
that enable beer patient outcomes while enhancing
the economics of the health care system
VALUES
Passion is at the heart of Getinge’s values
2021 ANNUAL REPORT
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Global value creation Introduction
Capitalize on having
one truly global brand
Strategic
Enablers
Build a proud global
organization with passionate and
performance-driven people
FOCUS ON
CUSTOMERS
SUSTAINABLE
DEVELOPMENT
Secure leadership
by strengthening
the oering
Drive productivity
& eciency
enhancement
Capture
global growth
Environmental & social
engagement
Quality culture
Passionate
employees
Business ethics
& responsible
leadership
Partners
Increasingly high demands are being placed on
health care of the future, meaning that companies,
researchers and universities must work even more
closely together and pick up their pace. By working in
an open ecosystem together with partners and other
suppliers, Getinge helps create sustainable value for
patients and society at large.
Employees
Getinge’s future and ability to create value for its
stakeholders are heavily dependent on the ambition
and passion of its employees, and on how Getinge
utilizes this.
Customers
Getinge’s top priority is to have satisfied customers.
Contributing positively to customers’ operations will
improve customer loyalty and lead to beer business
results for Getinge. The performance of the business
in recent years shows that customer satisfaction is
continuing to rise.
Society
Getinge is contributing to beer health care in a
productive way as this is key for society. Getinge
is also contributing to society indirectly through
collaborations with universities and relevant
organizations. Getinge’s products were sold in
132 countries in 2021.
USING GETINGE’S PRODUCTS AND SOLUTIONS, HEALTH CARE,
RESEARCH AND DEVELOPMENT CAN SUPPORT SOCIETY AT LARGE
STRATEGY FOR SUSTAINABLE GROWTH
2021 ANNUAL REPORT
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Introduction Interview with the CEO
How was 2021 for Getinge?
“I believe that we as a company succeeded in supporting our cus-
tomers with critical solutions during the pandemic, at the same
time as we revitalized other parts of the operations where needs
have not been as high for some time. The year was challenging
given the global supply problems that arose and led to a short-
age of components and logistical challenges, but we managed
these very well thanks to all of our employees and our successful
partnerships with customers, other suppliers and authorities. A
key reason that we succeeded in all of this was that we have made
extensive progress on implementing our corporate strategy.”
Can you tell us more about how this work is progressing?
“We have learned to work in new ways, both cross-functionally
internally and throughout the entire supply chain from supplier
to customer. The underlying productivity measures that started
in 2017 also contributed. We have worked methodically and in
a structured manner to make the system more robust. This founda-
tion has helped us during the pandemic.
We can also see that the strategy is working in financial terms,
with our productivity measures and close partnerships with our
customers and health care personnel generating results. We re-
ported solid underlying growth, even excluding sales of ventilators
related to COVID-19. It is particularly gratifying to see that the
Surgical Workflows business area is making a comeback following
an extremely tough 2020 with uncertainty about when the demand
for this customer oering would return.
Progress was also made at the German production sites in
Hechingen and Rasta, where we completed remediation measures
during the year according to the schedule agreed with the US FDA.
The implementation of our quality strategy is moving in a positive
direction and involves a more proactive and long-term approach to
working on quality, with an even greater focus on the customer.”
What progress has Getinge made in terms
of meeting customer needs?
“Ramping up ECMO is a positive example, both in terms of paving
the way for this being a therapy of the future and with respect
to how we succeeded in expanding the production capacity of
our ECMO products. In Life Science, we increased production of
DPTE®-BetaBag through the addition of a new plant in Merrimack,
US, which opened on schedule before the end of the year. Both of
these solutions have created high value for health care personnel,
researchers and pharmaceutical manufacturers, particularly
during the pandemic, and will continue to do so in the future.
We also continued our investments in making health care more
ecient and sustainable through increased digitalization. We
acquired companies in this area in 2021 and we are continuing to
identify potential acquisitions for the future.”
Have customer relationships changed in the past year?
“Our most recent customer survey shows that we have contin-
ued to strengthen our customer relationships, and we have also
Interview
with the CEO
about 2021
and the future
Getinge’s CEO Maias Perjos
summarizes 2021, which was
affected by the pandemic, supply
chain challenges and continued
improvements to the operations.
He also looks ahead, to new
products, more acquisitions
and the efforts to create even
more customer value.
Key figures
2021 2020
Order intake, SEK M 28,258 30,568
Net sales, SEK M 27,049 29,819
Adjusted EBITA, SEK M 5,212 5,724
Adjusted EBITA margin, % 19.3 19.2
Adjusted earnings per share, SEK 13.22 14.43
Net debt/ Equity ratio, multiple 0.14 0.35
Equity/ Assets ratio, % 56.5 47.7
Equity per share, SEK 92.43 78.88
“ The updated
quality strategy
will enable even
more proactive
and forward-
looking work,
focusing on
customers and
innovation rather
than remediation.
We have many
exciting things
planned for 2022.”
2021 ANNUAL REPORT
9
Interview with the CEO Introduction
improved at collaborating according to the new conditions that
apply. Wherever possible and where there is a considerable need,
we try to meet with customers in person in a responsible way, but
most meetings have been virtual. Virtual meetings and training
courses are now part of our daily lives, and we have significantly
improved their productivity. The launch of Getinge’s virtual hospi-
tal is also a way for us to create optimal conditions for the future
and oer a competitive alternative for our customers to visit our
physical experience centers.”
What progress has been made in sustainability?
“We commied to Scope 1–3 of the Science Based Targets
initiative at the end of 2020 as a next step in achieving the target of
becoming a CO
-neutral company in our own operations by 2025.
We have a plan in terms of the initiatives that are to be implement-
ed at our manufacturing sites and have continued to transition
to renewable sources of energy, for example. To further reduce
our carbon footprint, we are reviewing our entire supply chain
and working with suppliers and customers to adopt a circular
economy. This applies to everything from recycling and managing
residual products to logistics and distribution.
Together with our customers, we are looking at how our
products and solutions not only meet basic requirements but can
also support them to contribute to a more sustainable world. This
may involve many areas, such as reducing water consumption and
the use of anesthetic gases, but is also about creating a beer
environment for personnel, patients and their families.”
What is your view of the future?
“It is not easy to predict what will happen in 2022 and beyond since
we are still in a pandemic. Naturally, like everyone else I hope that
this will subside and we will find some sort of new normal. We will
complete the implementation of our flexible workplace concept
and facilitate even more interaction with customers both physically
and digitally, all to create higher value.
The corporate strategy and sustainability are of course
priorities for us going forward. We will continue on the path we
have set out. The updated quality strategy will enable even more
proactive and forward-looking work, focusing on customers
and innovation rather than remediation. We have many exciting
things planned for 2022.
Enhanced innovation will be very important in the future and we
have created a solid foundation for this. Digitalization is definitely
one of the key themes for 2022 to lead us into the future. We have
already taken important steps in terms of oerings, meeting formats
and collaborations. I hope that 2022 will be a year with several rele-
vant acquisitions and that we will be able to take additional steps in
the right direction to be part of creating sustainable health care.”
2021 ANNUAL REPORT
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Introduction External trends
External
trends
impacting
Getinge’s
business
Getinge operates globally,
and although the conditions
between countries and regions
may differ, many of the trends
are the same and result in
higher demand for Getinge’s
products and services for
health care and research.
2021 ANNUAL REPORT
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External trends Introduction
HEALTH CARE SYSTEMS
THAT ADD VALUE
Eective health care is needed to meet the
challenges brought about by a larger population.
Value-based health care is becoming increasingly
important: Oering therapies and devices that
create added value eectively and productively in
the form of enhanced quality and costs.
MORE PEOPLE AND
LONGER LIFE EXPECTANCY
The need for health care is increasing as the world’s
population continues to increase and live longer,
which is evident all over the world.
CUSTOMIZED DRUGS
Biopharma has developed rapidly in recent
years based on the industry’s ability to produce
customized drugs.
INNOVATION AND COLLABORATION
Producing new, value-adding innovations or
outcome-based remuneration models requires a
higher level of digitalization and global collaboration
between several parties.
Getinge is continuing to pursue
its strategy, which over time has
resulted in increased customer
and employee satisfaction. The
company’s product offering has
been strengthened in growth
areas, and an ambitious
sustainability agenda
has been prepared.
Strategy
495,000
Number of DPTE®-BetaBag
supplied during the year for
use in, for example vaccine
manufacturing
40 million
surgical procedures
are performed annually
using Getinge’s products
500
sterile supply departments
throughout the world are
equipped with Getinge’s
products
w
Strategy Targets
2021 ANNUAL REPORT
14
Financial targets
Getinge’s financial targets for 2018–2021 applied to
the key areas of sales, profitability and distribution
of profit to shareholders.
4–6%
Average organic
growth in net
sales
>10%
Average
adjusted EPS
growth
3.00 per share
Dividend for 2020
fiscal year
(25% of net profit)
4.00 per share
Proposed dividend
for 2021 fiscal year
(36% of net profit)
Dividend policy
30–50%
of net profit for the year
Targets
New financial targets
for 2022–2025
Getinge presented new financial tar-
gets in November. These targets are an-
nual organic net sales growth of 4–6%
and adjusted EPS growth of >10% on
average throughout the period. In ad-
dition to this, further net sales growth
and operating profit are expected to be
added from selective acquisitions, for
which Getinge has significant financial
and operational capacity. The dividend
policy of paying dividends of 30–50% of
net profit remains.
Financial targets for 2018–2021
Getinge had the following targets for
the period: Average organic growth in
net sales of 2–4% and >10% average
growth in earnings per share. Sales
in 2021 fell 4.8% organically mainly
as a result of major deliveries of ICU
ventilators in 2020.
Adjusted earnings per share
amounted to SEK 13.22.
The Board’s proposed dividend for
2021 is SEK 4.00 per share, an increase
of 33%. This level means that Getinge
is maintaining solid financials with
headroom for acquisitions and pro-
active actions in line with the business
strategy.
2021 ANNUAL REPORT
15
Targets Strategy
Satisfied
customers
Carbon
neutral
Safe place
to work
Passion
at work
Sustainability targets
Getinge’s sustainability targets include customer satisfaction, environmental impact,
social responsibility and passionate employees, which are all parts of the company’s
2019–2025 sustainability program.
New sustainability targets
for 2022–2025
Getinge decided to review its sustain-
ability targets when the 2022–2025
financial targets were updated.
Accordingly, the company has the
following targets from 2022:
• Improved customer quality
index >70 %
• Employee commitment >70%
• Carbon neutral in its own opera-
tions by 2025
• All employees trained in business
ethics and responsible leadership
Sustainability targets
for 2018–2021
Customer satisfaction
The goal is to achieve a Net Promoter
Score of >25, with 0 as the industry
average. A customer satisfaction
survey was carried out in 2021 which
showed a positive increase to 39, up
from 27 in 2018.
Environmental impact
Getinge’s aim is to become a car-
bon-neutral company by 2025. This
target encompasses activities in many
areas such as smart logistics solutions,
sources of renewable energy, green
certificates and changed business
travel routines.
Social responsibility
Getinge endeavors to have zero
occupational accidents. The ratio of
total occupational accidents in 2021
was 1.32 (1.35).
Passionate employees
Getinge’s target is to achieve >70% as
the index for employee commitment.
No company-wide employee survey
was carried out in 2021 due to the
pandemic. However, PULSE surveys
were conducted in various parts of the
organization on dierent occasions.
The overall result from these was 67%.
In 2022, Getinge plans to establish
a new, more appropriate system for
Group-wide employee surveys.
2021 ANNUAL REPORT
16
Strategy Strategy for sustainable growth
Strategy for
sustainable
growth
Getinge’s strategy was
updated during the year
to beer harmonize with
external requirements and
trends. Getinge has every
possibility to continue
to create value for
patients, customers
and society
at large.
1
Drive productivity &
efficiency enhancement
Getinge has identified several possibilities to improve the
eciency and productivity of its operations, particularly by seing
well-defined priorities in everything from product development,
purchasing and production to marketing activities and service.
A prime example of this is Quality Value Engineering (QVE),
which aims to establish structured and customer-centric
development activities to refine products so that product costs
decrease while maintaining or enhancing functionality and
customer value. QVE has been implemented in many projects for
developing operating tables with positive outcomes.
Eorts to continuously enhance productivity will continue.
Potential rationalization of the product portfolio, QVE and platform
optimization are examples of key components of these activities.
2
Secure leadership by
strengthening the offering
Getinge has selected prioritized segments to cohesively strengthen
the product and service oering in its three business areas. This
prioritization helps to facilitate a more selective allocation of
resources and to focus investments on the product and service
areas where customer demand is highest.
The company both launched new products and solutions, as
well as acquired companies in 2021. Products such as Rotaflow II,
Torin Artificial Intelligence, HL 40 and a new holistic system for
preparation of bioreactors have all contributed to increased
customer value. An important area is to continue to develop and
strengthen Getinge’s digital oering.
Getinge’s ambition is to increase the rate of acquisition over the
next few years. In 2021, Getinge acquired advanced technology
related to biological indicators from Verrix, a US start-up company.
This deal is part of Getinge’s acquisition agenda to strengthen the
oering of consumable supplies in sterile supply management
and follows on from the previous acquisition of Quadralene. The
product is in the development phase and is not yet commercially
available. Another acquisition made in December was Talis Clinical
LLC, a US-based leading innovator of High Acuity cloud-based
soware solutions. Talis Clinical’s oer is designed to support and
document care throughout the operative care process, but also
through labor and delivery episodes and critical care support,
including ECMO therapy.
The investment in digitalization will continue over the next few
years. For example, Getinge sees opportunities to use digital tools
to oer proactive service and improve clinical outcomes. The
company will also continue to invest in technical innovations and
more eective research and development (R&D) processes and
allocation of resources.
The strategy can be summarized in eight parts, all of which
aim to drive long-term sustainable development. It guides
employees toward improved results and includes processes
that create the right conditions for smart business decisions.
2021 ANNUAL REPORT
17
Strategy for sustainable growth Strategy
4
Capture global growth
Getinge’s global sales and services organization has developed
strongly in recent years, but is set to become even more agile
and customer oriented in order to capture more global growth
opportunities.
Getinge has experienced healthy global growth in service and
generally in products for life supporting ECMO therapy, bioreac-
tors and sterile transfer. To meet the need for DPTE®-BetaBag,
Getinge expanded production capacity at its site in Merrimack,
NH, in the US. Production capacity in Del in the Netherlands
was also expanded during the year to satisfy growing global de-
mand for bioreactor systems. The service business also reported
healthy growth in 2021, and Getinge sees many opportunities for
continued growth in this area.
To continue to safeguard global growth, Getinge will expand its
therapy oerings, further improve its service oering and enable
enhanced productivity to increase customer satisfaction.
3
Capitalize on having one truly global brand
Getinge operates in an industry where trust is crucial. This means
that the Getinge brand is to be associated with high credibility when
it comes to creating relevant value for patients and customers.
Customer satisfaction is an important indicator of the strength
of the brand, and for 2018–2021 the goal was to achieve a Net
Promoter Score of >25, with 0 as the industry average. A cus-
tomer satisfaction survey was carried out in 2021 which showed
a positive increase to 39, up from 27 in 2018. Getinge’s product
portfolio comprises products from a large number of acquisitions
and brands. The company has continued to re-brand products and
at the end of the year the Getinge logo was on 64% of the portfolio.
Two major brand campaigns were launched during the year, which
were positively received.
The journey toward greater awareness and an even stronger
brand will continue with a focus on customers and patients.
Capitalize on having
one truly global brand
Strategic
Enablers
Build a proud global
organization with passionate and
performance-driven people
FOCUS ON
CUSTOMERS
SUSTAINABLE
DEVELOPMENT
Secure leadership
by strengthening
the oering
Drive productivity
& eciency
enhancement
Capture
global growth
Environmental & social
engagement
Quality culture
Passionate
employees
Business ethics
& responsible
leadership
3
2
4
1
7
8
6
5
A Getinge employee in Suzhou, China, builds the Maquet Moduevo.
2021 ANNUAL REPORT
18
Strategy Strategy for sustainable growth
6
Business ethics and responsible leadership
Getinge works continuously on ensuring that its business activ-
ities are conducted in an ethical and responsible manner, in all
internal and external contexts.
An Ethics & Compliance Report was published during the year
to describe the company’s eorts in this field in recent years.
Getinge also launched the new “GetBasics” platform that provides
all employees with a fundamental framework for how the company
works. “GetBasics” describes how the company is organized, all
policy frameworks and how employees are to act responsibly.
At the start of 2022, Getinge began to implement a new global
program on responsible leadership. This program will encompass
all employees. Work will also continue on preventing business
risks, the responsible use of public funds and ensuring that all
employees are trained in business ethics at least once a year.
5
Passionate employees
Getinge’s aim is to create a dynamic organization of passionate
employees that continues to develop the company. Teamwork and
collaboration define how Getinge works to help its customers save
and improve the lives of more patients.
At an early stage of the pandemic, Getinge created a concept for
a flexible workplace approach that was introduced globally in 2021.
The company developed the concept to fit local adaptation and
implementation needs. A total of about 40% of Getinge employees
who received the oer have decided to take advantage of the flexible
concept. Leadership training courses for remote working were held
for about 900 managers in the first half of the year. The aim was to
ensure commitment and well-being among employees who have
decided to work under the flexible workplace concept and those
who were forced to work from home during the pandemic.
Getinge also works actively to create the conditions for learning
and further development in the company. More than 650 future
managers were identified during the year. Getinge also works
continuously to improve diversity.
Under a strategic partnership, Getinge collaborates with re-
searchers from the School of Business, Economics and Law at the
University of Gothenburg on activities related to customer-centric
innovation and sustainability. This partnership provides Getinge
with the opportunity to share relevant and applicable know-how
from researchers.
Based on strategic skills supply, leadership and diversity,
Getinge will strive to create world-class performances in a modern
company that is passionate about saving lives.
For several years, Getinge has been in a partnership with Pratham Sweden.
2021 ANNUAL REPORT
19
Strategy for sustainable growth Strategy
8
Environmental & social engagement
Getinge wants to contribute to sustainable health care through
increased environmental and social responsibility that has a
positive impact on society.
The company has also continued to transition its operations to-
ward the target of becoming carbon neutral in its own operations
by 2025. For example, Getinge expects more than half of its energy
consumption in 2022 to be derived from solar power at two of its
production facilities in Sweden and Türkiye.
Getinge has commied to the Science Based Targets initiative
as part of increasing transparency on its commitment to become
a carbon-neutral company by 2025 in its own operations. The
company also continued its important partnerships with such
organizations as Pratham Sweden, Queen Silvia Children’s Hospital
and WaterAid. Getinge also launched a framework for social fund-
ing and issued a social bond of SEK 570 M. The proceeds will be
used to expand production capacity for products that save lives.
The company’s focus going forward will be on continuing to
create sustainable work approaches and solutions for achieving
its CO
2
-target, including EcoDesign principles in an increasing
number of products and playing a key role in the development of
society.
7
Quality culture
Getinge works continuously on securing a quality mindset
throughout the organization and continuously improves its prod-
ucts, services and processes.
Getinge completed the remediation measures under the Con-
sent Decree with the US FDA at the production unit in Hechingen,
Germany in 2021. This does not automatically mean that the
company has completed the Consent Decree but that all plants
under the decree can now focus their energy on forward- looking
activities related to customer value and growth.
Getinge strives to ensure that a culture of quality permeates
every aspect of the company’s work. Work on implementing the
updated quality strategy continued throughout the year. For this
reason, a key element is training employees in customed designed
courses in quality culture and a total of 68% of employees partici-
pated in such courses in 2021.
Other key improvement measures were introducing a global
system for managing customer complaints, establishing three
Centers of Excellence for product registration to improve processes
and allocation of resources, and establishing a new Medical Aairs
organization.
Going forward, Getinge will strengthen the quality culture to
increase customer satisfaction, improve patient and user safety, re-
duce business risks and continue to nurture a learning organization.
,
2021 ANNUAL REPORT
20
Strategy Market overview & sales
Getinge
strengthens
its position
Getinge strongly believes
that all people and societies
should have access to the
best possible health care.
Getinge is well-equipped to
contribute to this aim and
create value for customers
in its three business areas, in
which the company has a
leading position in almost
all product categories.
2021 ANNUAL REPORT
21
Market overview & sales Strategy
An increasingly strong position in a growing market
Getinge has more than 25,000 customers globally and delivers to the
ten largest hospitals in all of Getinge’s markets. This year’s customer
survey, which had highly positive results, bears witness to a stronger
position in the market. This presents major opportunities to expand
the operations, particularly where the company can capitalize on
a unique position as the leading or one of the most prominent
suppliers in many growing segments. Getinge’s overall market is
expected to grow a total of 4–6% organically per year over the next
few years and the size of the market is about SEK 200 billion.
Solutions needed more than ever before
Getinge is well-equipped to address global health care challenges,
in many cases from a leading position.
Getinge’s largest sales markets 2021
Getinge’s ten largest markets represented >70% of total sales in 2021.
0
5
10
15
20
25
30
35
Austr aliaIndiaCanadaItalyUKFranceJapanGermanyChinaUS
%
Getinge’s competitors
Getinge has various competitors in each business area and
product category. Just like Getinge, most of these competitors
have a long history in the industry, substantial size and market
presence for their specific product categories. Some competitors
primarily operate in the US market, which is a relative strength
given that the price levels and margins in general are higher there.
This concentration is largely due to historical reasons, since
several companies originate from the US. Getinge was founded in
Europe, but has been growing faster in the US than in Europe for
a long period of time and the intention is to continue along the
same track.
18 million people die of
cardiovascular diseases
every year, making it the
leading cause of
death globally.
www.who.int
Hundreds of millions of
people are affected by
health care-associated
infections (HCAI) every
year.
www.who.int
It is estimated that
about 28 million
elective surgeries
around the world
were canceled or
delayed due to
COVID-19.
The CovidSurg Collaborative
Research Study
2021 ANNUAL REPORT
22
Strategy Acute Care Therapies
Therapies
that save lives
There are many stories of how
extracorporeal membrane oxygenation
(ECMO) saves lives by supplying oxygen
to the lungs of critically ill patients. In
2021, Getinge ramped up production
of Cardiohelp and with the launch of
Rotaflow II, the company became the first
in the world to offer two extracorporeal
life support systems.
2021 ANNUAL REPORT
23
Acute Care Therapies Strategy
2021 ANNUAL REPORT
24
Strategy Acute Care Therapies
Life support
care and
therapies that
save lives
Acute Care Therapies
offers world-leading prod-
ucts for life support and
therapies in acute health
conditions. The offering
includes solutions for:
• Critical care
• Cardiac and vascular
surgery
• Vascular interventions
Customers’ needs
A health care team’s access to the right
care solution is key in acute care therapies,
which was particularly evident during the
COVID-19 pandemic. Getinge develops
advanced clinical solutions that can
contribute to improving therapy results,
achieving more rapid recovery and enhanc-
ing quality of life for patients in intensive
care and surgery.
Research and development
Acute Care Therapies is the business area
at Getinge that allocates the largest share
of its sales to research and development
(R&D). The ambition going forward is to
eectively allocate resources to innova-
tive R&D in the product segments with
favorable future prospects, and Acute
Care Therapies has a leading position in
this regard. This includes, for example,
ICU ventilators and products for ECMO
-therapies, with the development of prod-
ucts, consumables, services and soware
considered top priorities.
Sustainability
Sustainability is a central part of product
development since the company wants
to contribute to a beer world in which
customer solutions have a minimal envi-
ronmental impact. Anesthetic gases used
to anesthetize patients when undergoing
surgery are powerful greenhouse gases.
Anesthesia and ventilation products were
connected to the Getinge Online service
platform in 2021 so that service teams
can more quickly and easily troubleshoot
products and identify solutions, even when
working remotely. Getinge Online also
gives customers access to data that allows
them to monitor the volume of anesthesia
used and what this level means when
translated into carbon footprint, thus
enabling cost savings and reducing the
impact on the environment.
Sales and profitability
Sales and profitability in 2021 continued to
be impacted by the COVID-19 pandemic,
although not as markedly as in 2020 when a
record-number of ICU ventilators were sold.
Productivity improvements combined with
continuing healthy growth in life support
products and a recovery in products for
elective cardiovascular surgery made a posi-
tive contribution to the operating margin.
Focus for the next few years
• Accelerated growth in aractive seg-
ments through supplementary acquisi-
tions and innovation
• Launch of several advanced products
and new digital features
• Productivity enhancements to support
continuing margin improvements
• Development of products and solutions
that reduce environmental impact
New products
Several new products and updates were
introduced during the year. The HL 40
heart-lung machine, which was launched
commercially in several countries in April,
is designed to increase safety and ensure
maximum uptime in cardiac surgery. In the
second quarter, Getinge also received US
FDA 510(k) clearance for three products
in the US, expanding the Servo ventilator
platform oering. Rotaflow II, a new life
support product, was launched in certain
markets in the third quarter. The technol-
ogy oers up to 14 days of ECMO therapy
in a compact manner*, which gives health
care personnel the flexibility they need
to provide high quality patient care. Talis
Clinical LLC, a US-based leading innovator
of High Acuity cloud-based soware
solutions, was acquired in December. Talis
Clinical’s oer is designed to support and
document care throughout the operative
care process, but also through labor and
delivery episodes and critical care support
including ECMO therapy. Just aer the end
of the reporting period, Getinge completed
a minor acquisition of Irasun GmbH, which
is based in Munich. The acquisition has
enabled Getinge to broaden its portfolio
to include innovative solutions in ECMO
therapy and cardiac surgery.
Production sites
Acute Care Therapies has production
sites in the US, Germany, France, Sweden,
Türkiye and China. Two production sites in
New Jersey, US, were divested during the
year as part of the ongoing consolidation
of the production sites in the state. To
meet a sharp rise in demand, significant
investments were made during the year
to expand production capacity for ECMO
equipment and vascular implants.
*Not yet approved for use in the US.
» We are continuing to strengthen the
offering in product segments with
significant growth potential. «
Jens Viebke, President Acute Care Therapies
2021 ANNUAL REPORT
25
Acute Care Therapies Strategy
Intensive Care
Cardiovascular
Surgery
Cardiovascular
Interventions
Products
Life support therapies
for intensive care, in
the form of ventilators,
hemodynamic monitoring
and ECMO.
Products for advanced
cardiac surgery, such as
heart-lung machines,
heater-cooler units,
beating heart surgery,
endoscopic vessel
harvesting, le atrial
appendage closure
devices, anesthesia
systems, aortic and
peripheral vascular
gras and thoracic
drainage systems.
Products to facilitate
cardio vascular
procedures, such as
products for cardiac
assist and peripheral
vascular stents.
Share of sales
within Acute Care
Therapies
(average 3 years)
57% 26% 17%
Market
growth per year
4–6% 1–2% 3–5%
Getinge’s
position
1 1 5
Getinge’s
market share
38% 18% 7%
Main
competitors
Dräger, Hamilton,
Medtronic, Edwards
Lifesciences
LivaNova, Terumo,
GE Healthcare, Dräger, WL
Gore, Medtronic
WL Gore, Medtronic,
Boston Scientific, Abbo,
Cook, BD
Net sales and
adjusted EBITA margin
0
5,000
10,000
15,000
20,000
25,000
20212020
0
10
20
30
40
50
SEK M %
Net sales
Adjusted EBITA margin
Acute Care
Therapies,
57%
Americas, 46%
(SEK 7,105 M)
EMEA, 30%
(SEK 4,661 M)
APAC, 24%
(SEK 3,760 M)
Business area’s regional
distribution of sales
OFFERING FROM A CUSTOMER PERSPECTIVE
Getinge’s addressable
market amounts to SEK
billion with anticipated
organic growth of 4–6%
per year.
100
Business area’s share
of Group sales
2021 ANNUAL REPORT
26
Strategy Life Science
Safer research
and production
In a time when the whole world’s
aention turned to vaccine
researchers and manufacturers,
Getinge expanded its production of
sterile transfer solutions, led by the
DPTE®-BetaBag. A system for the
preparation of bioreactors was also
launched in 2021 to ensure a validated
outcome while increasing laboratory
throughput and improving
staff safety.
2021 ANNUAL REPORT
27
Life Science Strategy
2021 ANNUAL REPORT
28
Strategy Life Science
From illness
to cure, from
science to life
Life Science offers a compre-
hensive range of equipment
and technical expertise in
research and production
of pharmaceuticals. Life
Science delivers effective
solutions that help customers
optimize their processes
and thereby meet regulatory
requirements. The offering
includes:
• Ports, containers and
single-use bags for sterile
transfer of components,
tools and fluids, in and out
of aseptic filling lines
• Bioreactor systems for
research and production
of vaccines, antibodies,
enzymes and bio-plastics
for industrial biotechnology
• Sterilizers for the steriliza-
tion of pharmaceuticals and
medical devices
• Washer-disinfectors for
cleaning of technical pro-
duction equipment
• Isolators for the protection
of operators and quality
assurance of aseptic
processes
Production sites
Life Science conducts production at a total
of six production sites in Sweden, France,
Netherlands, Poland and the US. Intensive
activities have been carried out to meet the
very high and sustained demand in all prod-
uct categories. One of the projects aimed at
achieving higher capacity was the estab-
lishment of production of DPTE®-BetaBag in
Merrimack, NH, USA, which was completed
in December. In addition, production capac-
ity of the bioreactor systems was expanded
to satisfy growing global demand.
Sustainability
In Life Science, Getinge is also driven to con-
tribute to a more sustainable world for both
customers and society at large. The business
area manufactures single-use products,
which is an area in which the company plans
to expand. Single-use products may sound
harmful to the environment but the opposite
is true in this case. Looking at the energy
consumption of a plant that uses solutions
with stainless steel, single-use products help
to significantly reduce carbon
emissions due
to higher productivity and energy not being
used to clean and sterilize.
Sales and profitability
Sales and profitability continued to be
impacted by the COVID-19 pandemic, mainly
as a result of the sharp increase in sales of
sterile transfer products and bioreactors
related to vaccine manufacturing and
biopharmaceutical drugs.
Focus for the next years
• Continue to strengthen the oering to
biopharma customers and expanding
production capacity in sterile transfer and
bioreactors
• Develop new products and solutions that
reduce environmental impact
• Continued productivity improvements
Customers’ needs
Customers include world-leading manu-
facturers of pharmaceuticals and medical
devices. These customers need eective
research and production processes free
from contamination. In addition, they
demand easy-to-use products that shorten
lead times and reduce the risk of unwanted
delays or mistakes.
Research and development
Research and development in sterile trans-
fer and bioreactors focuses on standardized
products and consumables. For example,
Getinge intends to further develop the
range of single-use bioreactors used for
research and production of biopharma-
ceuticals. In addition, Getinge intends to
further strengthen its leading position in
sterile transfer. Life Science’s sterilizing and
disinfection oering is based on the same
base technology that exists in the Surgical
Workflows business area. However, the
degree of customized solutions in this area
is considerably higher in Life Science, and
therefore a large degree of product develop-
ment is conducted together with the cus-
tomers. This entails that the collaboration is
generally comprehensive and extends over
a long time, presenting favorable opportuni-
ties to create value for both parties.
New products
A new, holistic system for preparation
of bioreactors, which supports medi-
cal vaccine research, was launched at the
end of March. The end-to-end approach
includes dismantling of the bioreactor,
automated washing using Getinge’s
purpose-built wash rack, followed by an
integrated sterilization process enabling
three dierent types of loads in one cycle.
» In 2021, we laid the foundation for increased
growth in the US and continued strength-
ened margins in the business area. «
Harald Castler, President Life Science
2021 ANNUAL REPORT
29
Life Science Strategy
Pharma production Medical research
Products
Sterile/Aseptic Transfer Solutions, GMP
Sterilizers, GMP Washers, bioreactors,
logistic automation, Isolators.
Lab Washers & Sterilizers, Cage
Washers and Sterilizers, bioreactors,
logistic automation.
Share of sales in
Life Science
65% 35%
Market growth
per year
10–12% 8–10%
Getinge’s
position
2 2
Getinge’s
market share
12% 14%
Main
competitors
Fedegari, Steris, Steelco, Sartorius, GE,
Thermo Fisher
Steris, Steelco/Miele, IWT, Sartorius,
Eppendorf
0
1,000
2,000
3,000
4,000
20212020
0
5
10
15
20
SEK M %
OFFERING FROM A CUSTOMER PERSPECTIVE
Net sales and
adjusted EBITA margin
Net sales
Adjusted EBITA margin
Life Science,
13%
Americas, 37%
(SEK 1,319 M)
EMEA, 44%
(SEK 1,547 M)
APAC, 19%
(SEK 692 M)
33
Getinge’s addressable
market amounts to SEK
billion with anticipated
organic growth of 8–10%
per year.
Business area’s regional
distribution of sales
Business area’s share
of Group sales
2021 ANNUAL REPORT
30
Strategy Surgical Workflows
See beer,
go further
A successful surgical outcome
depends on the surgeon’s ability
to visualize and assess the wound.
In 2021, Getinge launched Volista
VisioNIR, an innovative function in
Maquet Volista that allows surgical
staff to keep the surgical light on
when performing open surgeries
using NIR fluorescence imaging
systems.
2021 ANNUAL REPORT
31
Surgical Workflows Strategy
2021 ANNUAL REPORT
32
Strategy Surgical Workflows
Optimized quality,
safety and capacity
usage of sterile supply
departments and
operating rooms
Surgical Workflows is a
world-leading supplier of
products and solutions to
serve as an end-to-end part-
ner for optimizing the quality,
safety and capacity usage
of the sterile supply depart-
ments and operating rooms.
The offering includes:
• Products for sterile
reprocessing
• Operating room equipment
• IT systems for efficient
workflows
• Service
Customers’ needs
Health care’s access to eective infrastruc-
ture is of major importance for surgical
interventions to ensure a high level of
clinical safety and quality. There is also
a significant need to reduce the risk of
hospital-related infections, which entail
additional suering for patients, consume
large amounts of resources for individual
hospitals and have a negative impact on
society in general. Health care also needs
to increase productivity to enable higher
treatment volumes with limited resources.
Research and development
Surgical Workflows is focusing more on
developing products for various customer
segments, including the growing value
Sustainability
Getinge works on EcoDesign in its product
development, with a special focus on the
environmental impact of the product life
cycle. This has resulted in the use of fewer
materials, more recyclable components
and a reduction in customers’ consump-
tion of energy, water and other consum-
ables. Training courses are also held. For
example, Getinge released a sustainability
manual in 2021 that contains recommen-
dations to help hospitals around the world
assume a greater environmental responsi-
bility and optimize daily flows in sterile sup-
ply departments. Solar panels were also
installed on the production site in China
during the year, and the business area buys
green electricity wherever possible.
Sales and profitability
Sales were negatively impacted by the
COVID-19 pandemic again in 2021. However,
the order intake increased compared with
2020, indicating higher sales going forward.
Continuing productivity enhancements
contributed to increased profitability
despite the lower sales volumes.
Focus for the next years
• Organic and acquired growth in
aractive and rapidly growing product
categories, such as consumables and
digital solutions
• Innovation-driven dierentiation in the
product range
• Development of products to reduce
environmental impact
• Continuing productivity enhancements
throughout the value chain
segment. During the year, extensive eorts
were made to strengthen both the product
portfolio and the production process. The
business area has about 300 employees
who work exclusively on R&D. During the
year, they carried out 16 major improve-
ment programs in relevant technological
fields. For example, significant investments
were made to develop new oerings in
consumables, such as chemicals for sterile
reprocessing.
In addition to proprietary product devel-
opment, Surgical Workflows is engaged in
several strategic collaborations, for example
with world-leading manufacturers of medi-
cal imaging technologies for hybrid ORs.
New products and expanded
offering through acquisitions
One of the launches during the year were
Torin Artificial Intelligence (AI), which is
designed to improve eciency in man-
aging schedules for surgical procedures,
and the VisioNIR feature in Maquet Volista
StandOP – an innovative solution which
makes it possible to keep the surgical
light on when performing open surgeries
using NIR fluorescence imaging systems.
In the third quarter, Getinge acquired
technology related to biological indicators
from Verrix, a US start-up company. This
deal is part of Getinge’s acquisition agenda
to strengthen the oering of consumable
supplies in sterile supply management and
follows on from the previous acquisition of
Quadralene.
Production sites
Surgical Workflows has production at sites
in Sweden, Germany, France, UK, Poland,
China and the US.
» Our targeted and structured efforts to
increase customer value and productivity
are starting to generate results. «
Stéphane Le Roy, President Surgical Workflows
2021 ANNUAL REPORT
33
Surgical Workflows Strategy
Sterile supply
department
Operating room
equipment
Integrated solutions
for operating rooms
Offering
Complete systems
and automation for
the sterilization of
instruments used
in surgery, including
sterilizers, low-
temperature sterilizers
and disinfectors, as
well as consumables
and service.
Complete operating
room solutions including
high-end hybrid operating
rooms in combination
with imaging partners,
advanced operating
tables, lights and ceiling
supply units, modular
room systems as well as
consulting on layouts,
workflows and technical
service.
IT systems to enhance
eciency and safety
in the flow of patients,
employees and sterile
equipment to and from
the operating room.
Share of sales
in Surgical
Workflows
46% 48% 6%
Market growth
per year
4–6% 4–6% 7–15%
Getinge’s
position
1–2 1 1–5
Getinge’s
market share
22%* 19% 7%*
Main
competitors
Steris, Steelco, Shinva,
Belimed, ASP
* Share varies between
geographical regions
and oerings.
HillRom/Trumpf, Steris,
Stryker, Mindray, Dräger
Censis, Teletracking and
local IT companies
* Share varies between
geographical regions and
oerings.
Net sales and adjusted
EBITA margin
-2,000
0
2,000
4,000
6,000
8,000
10,000
20212020
-2
0
2
4
6
8
10
SEK M %
Surgical
Workflows,
30%
OFFERING FROM A CUSTOMER PERSPECTIVE
67
Getinge’s addressable
market amounts to SEK
billion with anticipated
organic growth of 4–6%
per year
Net sales
Adjusted EBITA margin
Business area’s share
of Group sales
Americas, 23%
(SEK 1,825 M)
EMEA, 50%
(SEK 3,959 M)
APAC, 27%
(SEK 2,180 M)
Business area’s regional
distribution of sales
Corporate
governance
34 About the report
36 Overall structure for corporate governance
38 General Meeting
39 Nomination Commiee
40 Board of Directors
47 External auditor
47 President & CEO and Getinge Executive Team
50 Building blocks in the Getinge corporate
governance model
53 Assurance framework, risks and risk
management
58 Internal control over the financial reporting
59 Auditor’s report on the Corporate
Governance Report
Contents
This Corporate Governance Report has
been prepared and adopted by Getinge AB
with the provisions of the Swedish Annual
Accounts Act and the Swedish Corporate
Governance Code. The Corporate
Governance Report presents an overview
of Getinge’s corporate governance,
including a description of the system for
internal control and risk management in
relation to financial reporting.
Updated information on Getinge’s
corporate governance in accordance with
the requirements in the Swedish Corporate
Governance Code are available at www.
getinge.com/int/about-us/corporate-gov-
ernance/overview/. Information on the
website does not comprise part of this
Corporate Governance Report.
About the report
36
2021 ANNUAL REPORT
Corporate governance Corporate Governance Report
Eective corporate governance is a key component in ensuring
that Getinge is managed sustainably and responsibly in accor-
dance with applicable legislation and regulations. The Group’s
corporate governance structure and its internal regulations pro-
vide frameworks for achieving business objectives and strategies.
It is aimed at ensuring the continued strong development of the
Group’s operations and, consequently, that the Group’s operations
fulfill its obligations to shareholders, customers, employees,
suppliers, creditors and society.
This report summarizes how the corporate governance is struc-
tured and how it has been carried out and developed in the Group
during the 2021 fiscal year.
The company and Articles of Association
Getinge AB (publ) is a Swedish public limited liability compa-
The company’s corporate registration number is 556408-5032.
The registered oce of the Board of Directors is in the munici-
pality of Gothenburg, Västra Götaland County, Sweden. The
head oce is located in Gothenburg. The objects of the com-
pany’s operations shall be to, directly or indirectly through
subsidiaries, engage in the manufacture and sale of medical
technical equipment, and in any other activities compatible
therewith. The company’s Articles of Association contain no
limitation on the number of votes each shareholder can cast
at a General Meeting of Shareholders. The company’s Articles
of Association contain no specific provisions for the appoint-
ment or dismissal of Board members or on amendments to
the Articles of Association.
The company’s Articles of Association are available on the
Group’s website: www.getinge.com.
Shares and shareholders
The company’s Class B shares have been admied to trading
on Nasdaq Stockholm since 1993 and the share is included
in the Nasdaq Nordic Large Cap segment and the OMXS30
index. The total number of shares amounts to 272,369,573, of
which 18,217,200 are Class A shares with each share carrying
entitlement to ten votes and 254,152,373 are Class B shares
with each share carrying entitlement to one vote. All shares
carry the same dividend entitlement.
The largest shareholder, Carl Bennet, held 20.0% of the
shares outstanding at the end of the 2021 fiscal year and
50.1% of all votes in the company, making him the only direct
or indirect shareholder with a holding in the company repre-
senting over one tenth of the number of votes for all of the
shares in the company.
For information about shareholders and the Getinge share,
see pages 148–149 in the Annual Report and www.getinge.com.
Getinge’s overall structure for
corporate governance
Corporate
Governance
Report
Getinge AB (publ) hereby
presents the Corporate
Governance Report for 2021.
This Corporate Governance
Report is examined by the
company’s auditors. The
auditor’s statement is
available on page 59.
37
2021 ANNUAL REPORT
Corporate Governance Report Corporate governance
Swedish Corporate Governance Code, Nasdaq Stockholm
rules and good practice on the stock market
In addition to Swedish legislation, rules and regulations, appli-
cable EU regulations and other applicable laws and regulations,
good practice on the stock market and Nasdaq’s Rulebook for
Issuers, the Group’s corporate governance is based on the Swedish
Corporate Governance Code (the “Code”) and applicable instruc-
tions, which are available at corporategovernanceboard.se. The
company complies with the Code’s regulations and presents in
this report an explanation for any deviation from the Code’s reg-
ulations in 2021, based on the version of the Code per December
31, 2021.
Nasdaq Stockholm’s Rulebook for Issuers is available at
nasdaqomxnordic.com, and the Swedish Securities Council’s
rulings on good practice on the Swedish stock market are available
on aktiemarknadsnamnden.se.
Good compliance with the Code, no violations
of stock market rules or good practice
Getinge follows the Code’s “comply or explain” principle.
In the view of the Board of Directors, Getinge essentially
complied with the Code during 2021, but with the single deviation
from the Code’s rule p. 2.4 that the Chairman of the Board or any
other Board member is not to be Chairman of the Nomination
Commiee. The Nomination Commiee appointed Carl Bennet
(Board member but also sole owner of the company’s largest
shareholder, Carl Bennet AB) as Chairman of the Nomination
Commiee, since the Nomination Commiee found it important
to have a representative of the largest shareholder to serve as
Chairman of the Nomination Commiee.
There were no violations of the stock market rules and no vio-
lations of good practice on the stock market reported by Nasdaq
Stockholm’s Disciplinary Commiee or the Swedish Securities
Council.
Main governing bodies within Getinge
The main governing bodies within Getinge are:
• Getinge AB’s General Meeting of Shareholders
• The Board of Directors of Getinge AB
• President & CEO of Getinge AB, assisted by the Getinge
Executive Team
Shareholders
Nomination Commiee General Meeting
President & CEO
Acute Care Therapies
Cardiac
Surgery
Critical
Care
Cardiac
Assist
Vascular
Systems
Cardiopul
monary
Advanced
Clinical
Guidance
Digital
Health
Solutions
Infection
Control
Surgical
Work
places
Global Sales
(10 sales regions)
Surgical Workflows Life Science
External auditor
Remuneration Commiee Board of Directors
Support functions:
Product segments
Business areas
Global sales organization
Quality compliance, Regulatory & Medical affairs
Communication, Brand Management, Academy
Finance
Legal, Compliance & Governance
HR & Sustainability
Corporate
Internal Audit
Audit and Risk Commiee
38
2021 ANNUAL REPORT
Corporate governance Corporate Governance Report
The General Meeting of Shareholders is Getinge’s highest deci-
sion-making body. Shareholders can exert their influence at the
Annual General Meeting (AGM) and, when applicable, at an Extra-
ordinary General Meeting. A General Meeting of Shareholders
shall be held in the location that the Board has its registered oce
(Gothenburg Municipality, Västra Götaland County) or in Halmstad
Municipality, Halland County. General Meetings of Shareholders
are convened by publishing a notice in Post- och Inrikes Tidningar
(the Swedish Ocial Gazee) and on the company’s website. An
announcement is to be made in Svenska Dagbladet that the notice
of the Meeting has been published. Shareholders, who want to
participate in the discussions at the Meeting must give notice of
aendance to the company not later than the date provided in
the notification of the Meeting. All shareholders registered in the
shareholders’ register six banking days before the Meeting and
who have notified their aendance to the Meeting within the time
given in the notice are entitled to participate in the Meeting and
exercise their voting rights in full. Shareholders who are not able
to personally aend can be represented by proxy. The Articles of
Association also prescribe a possibility for the Board of Directors
to resolve on the collection of powers of aorney in accordance
with procedure described in the Swedish Companies Act and to
resolve that shareholders can exercise their voting rights by post
prior to the Meeting. A shareholder who wishes to have a maer
put forward at the General Meeting of Shareholders must submit
a wrien proposal to the Board in a timely manner so that the
proposal can be included in the notice of the Meeting.
The AGM must be held within six months of the end of the fiscal
year. At the AGM, the shareholders exercise their voting rights
in key issues, such as the adoption of income statements and
balance sheets, allocation of the company’s earnings, discharge
from liability of Board members and the CEO, election of Board
members and auditors, fees to Board members and auditors,
establishment of guidelines for remuneration to senior execu-
tives (where appropriate), approval of the remuneration report,
and approval of principles for appointment of the Nomination
Commiee and guidelines for the Nomination Commiee’s work
(where appropriate).
2021 Annual General Meeting
The AGM was held on April 20, 2021 by virtue of the temporary law
intended to facilitate the implementation of General Meetings of
shareholders and associations during the COVID-19 pandemic, the
AGM was held virtually with shareholders. Shareholders were also
given the opportunity to vote by post.
The AGM was aended by the majority of the Board members
(including the Chairman of the Board, Chairman of the Audit and
Risk Commiee, and the CEO) as well as representatives of the
members of the Nomination Commiee and its Chairman also
being the Vice Chairman of the Board. The company’s auditor
in charge Johan Rippe also aended the Meeting. A recorded
presentation by the CEO was made available on the website prior
to the Meeting.
A total of 536 shareholders participated in the AGM (digitally
and via postal vote), representing 62.1% of the number of shares
and 76.3% of the total number of votes in the company.
The Chairman of the Board Johan Malmquist was elected
Chairman of the Meeting. The minutes from the AGM are available
on Getinge’s website: www.getinge.com. The decisions made by
the AGM include:
• Adoption of the income statements and balance sheets pre-
sented for the Parent Company and the Group, and discharge
from liability of the Board members and CEO.
• Dividend in accordance with the Board’s and the CEO’s proposal
of SEK 3.00 per share for the 2020 fiscal year.
• Adoption of the remuneration to Board members and the audi-
tor in accordance with the Nomination Commiee’s proposal
• In accordance with the Nomination Commiee’s proposal, Carl
Bennet, Johan Bygge, Cecilia Daun Wennborg, Barbro Fridén,
Dan Frohm, Sofia Hasselberg, Johan Malmquist, Maias Perjos
and Malin Persson were re-elected to the Board and Kristian
Samuelsson was elected as a new Board member.
• Re-election of Johan Malmquist as Chairman of the Board in
accordance with the Nomination Commiee’s proposal.
• Re-election of Öhrlings PricewaterhouseCoopers AB as auditor
for the company until the end of the 2022 AGM in accordance
with the Nomination Commiee’s proposal and the Audit and
Risk Commiee’s recommendation.
• Approval of the remuneration report.
• Adoption of new guidelines for the remuneration to senior
executives.
The Board of Directors did not propose and the AGM did not
authorize the Board to resolve that the company should issue new
shares or acquire own shares.
2022 Annual General Meeting
The 2022 Annual General Meeting will be held on April 26,
2022. The date and location of the AGM were published on the
company’s website in conjunction with the publication of the
interim report for the third quarter of 2021. The AGM will be
held in Kongress hallen at Hotel Tylösand in Halmstad, Sweden.
Shareholders will also have the opportunity to vote by post. On
the website, it is also published that shareholders who would like
to have a maer addressed at the AGM must submit a motion by
March 8, 2022, at the latest.
General Meeting
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2021 ANNUAL REPORT
Corporate Governance Report Corporate governance
The Nomination Commiee’s task is to submit proposals ahead of
the AGM regarding the election of the Chairman of the AGM, the
Chairman of the Board and other members of the Board, election of
auditors, as well as fees for Board members and auditors.
At the 2020 AGM, new principles were adopted for the appoint-
ment of the Nomination Commiee and the instruction for the
Nomination Commiee. Ahead of the Annual General Meeting, the
Nomination Commiee shall be composed of members appointed
by the four largest shareholders in terms of voting rights, based on a
list of owner-registered shareholders from Euroclear Sweden AB or
other reliable ownership information, as of August 31 of each year,
and the Chairman of the Board. In addition, if the Chairman of the
Board in consultation with the member appointed by the largest
shareholder in terms of voting rights deems it appropriate, it shall
include an, in relation to the company and its major shareholders,
independent representative of the minority shareholders as a
member of the Nomination Commiee. In addition, the instruction
contains, for example, provisions that are applicable in the event
that any member leaves the Nomination Commiee, measures in
the event of significant changes in ownership and guidelines for the
Nomination Commiee’s assignment and work.
No remuneration will be paid to the members of the Nomination
Commiee. Any necessary expenses for the Nomination Commit-
tee’s work will be paid by the company. The Nomination Commiee
is entitled to charge reasonable costs to the company, such as
recruitment costs, if it is deemed necessary to obtain an appropri-
ate selection of candidates for the Board of Directors.
The instruction for the Nomination Commiee is available in its
entirety at: www.getinge.com/int/about-us/corporate-governance/.
Nomination Commiee ahead of 2022 Annual General Meeting
The Nomination Commiee ahead of the 2022 Annual General
Meeting comprises the company’s Chairman of the Board Johan
Malmquist, and representatives from the following owners, listed
by size:
• Carl Bennet AB: Carl Bennet
• Fourth Swedish National Pension Fund: Per Colleen
• AMF Pension & Fonder: Peter Guve
• SHB Fonder & Liv: Anna Sundberg
• Representing minority shareholders:
Sophie Nachemson-Ekwall
Carl Bennet was appointed Chairman of the Nomination Commiee
ahead of the 2022 AGM (see also the section “Good compliance
with the Code, no violations of stock market rules or good
practice” for information about deviations from the Code). No
remuneration is paid to members of the Nomination Commiee,
and the members have armed that there are no conflicts of
interest that aect their assignment on the Commiee.
The Nomination Commiee has held two minuted meet-
ings ahead of the 2022 AGM. In addition, the members of the
Nomination Commiee have maintained contact and engaged in
telephone dialog with eachother between meetings.
The Nomination Commiee has addressed all the maers that
the Nomination Commiee must address in accordance with the
Code, as presented in more detail below. The Nomination Commit-
tee has also, with the purpose of fulfilling its obligation to provide
information to shareholders, informed the company on how the
Nomination Commiee conducted its work and of the proposals
the Nomination Commiee has decided to submit.
As a basis for its work, the Nomination Commiee studied the
financial statements for the company’s operations in 2021. The
Nomination Commiee has also studied the nomination proposals
received and the evaluation of the Board of Directors as well as the
work it has carried out. The results of the evaluation were presented
in their entirety to the Nomination Commiee. The evaluation also
showed that the Board functioned well, the rate of aendance at
Board meetings was high, and that all the Board members displayed
a high level of commitment. In addition, the Nomination Commiee
has conducted interviews with two of the current Board members.
When preparing its proposals on the composition of the Board,
the Nomination Commiee takes into account the individual
expertise and experience of the proposed Board members, how
well the Board will work as a whole and whether it possesses the
necessary breadth in terms of background and expertise. The
Nomination Commiee pays particular aention to the value of
diversity and the balance between the need for renewal and conti-
nuity in the Board. In its eorts to achieve diversity, the Nomination
Commiee gives special consideration to an even gender distribu-
tion. The Nomination Commiee applies rule 4.1 of the Code as its
diversity policy in preparing proposals of Board members. The aim
of the policy is that the Board is to have a composition appropriate
to the company’s operations, phase of development and other
relevant circumstances and to exhibit diversity and breadth of
qualifications, experience and background, and strive for an equal
gender distribution.
In its own evaluation, the Nomination Commiee assessed that
the Board functioned well and that the current Board members
possess broad expertise, extensive industry knowledge, financial
expertise and knowledge of international conditions and markets.
The Nomination Commiee’s proposal to Board members,
remuneration to the Board of Directors and election of auditors and
other relevant proposals are submied together with the notice of
the forthcoming 2022 AGM.
The Nomination Commiee has also studied the Audit and Risk
Commiee’s recommended proposal for the election of auditors.
Shareholders who wished to submit proposals to Getinge’s 2022
Nomination Commiee were able to contact the Nomination
Commiee by e-mail at valberedningen@getinge.com or by mail:
Getinge AB (publ), A: Nomination Commiee, Box 8861, SE-402 72
The composition of the Board of Directors, Board members’ individual
shareholdings, their independence in relation to the company,
executive management and the largest shareholders as well as their
other assignments in other companies are presented in the table
in the presentation of Board members on pages 44–46. The Board
members’ aendance at meetings during the year is also presented
on these pages. Information on the remuneration of Board members
is presented on pages 44–46.
Nomination Commiee
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2021 ANNUAL REPORT
Corporate governance Corporate Governance Report
Board members, independence, etc.
According to the Articles of Association, Getinge’s Board of
Directors is to comprise not fewer than three and not more than
ten members, with not more than ten deputy members. The Board
members are elected annually at the AGM to serve for the period
up to and including the next AGM. Employees have the right to
appoint two representatives and two deputy members to the
Board.
In 2021, Getinge AB’s Board comprised ten members elected
at the AGM and two members appointed by the employee
representative organizations, as well as two deputy members for
the employee representatives. At the AGM on April 20, 2021, all
Board members previously elected at the AGM were re-elected in
accordance with the Nomination Commiee’s proposal, except
for Johan Stern who declined re-election. Kristian Samuelsson
was elected as a new Board member in accordance with the
Nomination Commiee’s proposal, which meant that a total of ten
members were elected, of whom four are women and six men (40%
and 60%, respectively). Johan Malmquist was appointed Chairman
of the Board in accordance with the Nomination Commiee’s pro-
posal. Getinge’s President & CEO is one of the members elected by
the AGM.
According to rules 4.4 and 4.5 of the Code, the majority of the
elected Board members are to be independent in relation to the
company and executive management and at least two of these
members are also to be independent in relation to the Group’s
major shareholders. The Nomination Commiee deemed that
the composition of the Board of Getinge AB during 2021 met the
requirements for independent members as stipulated by the Code.
The Nomination Commiee has observed that Maias Perjos, in
his capacity as CEO, are to be regarded as dependent in relation
to the company and executive management, and that Carl Bennet
and Dan Frohm, as representatives and Board members of Getinge
AB’s main owner Carl Bennet AB, are to be regarded as dependent
in relation to the major shareholders. Other Board members are
deemed to be independent in relation to the company, executive
management and the major shareholders.
Responsibilities and work of the Board of Directors
Primarily, the Board is responsible for the organization of the com-
pany and the management of its aairs. In carrying out its duties,
the Board must safeguard the interest of all its share holders.
It is also the Board’s duty and responsibility to ensure that this
Corporate Governance Report is prepared.
The Board of Directors is to maintain and promote a good
corporate culture and ensure that Getinge – on behalf of its share-
holders – is led in the most sustainable, responsible and eective
manner possible. The Board of Directors regularly evaluates
Getinge AB’s and the Group’s financial position and ensures that
Getinge is organized in such a way that bookkeeping, management
of cash and cash equivalents, and the company’s general financial
conditions are controlled satisfactorily.
The Board of Directors of Getinge AB will also, for example,
• Approve the overall strategy and the overall goals for Getinge’s
operations and its general organization;
• Ensure that there are established procedures in place for finan-
cial reporting, and ensure that financial reporting is conducted
in accordance with applicable rules and regulations;
• Have an overview of the overall financial plan for Getinge and
earnings, forecasts and forward-looking statements, as well as
adopt all financial statements;
• Ensure that there are eective systems for control of Getinge’s
operations and financial position;
• Ensure that there is well-functioning internal control within
Getinge;
• Ensure that there is an appropriate and well-functioning system
for the monitoring and control of Getinge’s operations and risks
that are related to the operations;
• Identify how sustainability issues aect Getinge’s risks and
business opportunities;
• Approve the required guidelines for the company and the
Group’s conduct in society for the purpose of securing its long-
term value-creation ability and approve the required general
policies for the company and the Group;
Board and Commiee meetings in 2021
Q1
JANUARY FEBRUARY MARCH
Audit and Risk
Commiee meeting
Remuneration
Commiee meeting
Board meeting: Full-
year report (annual
accounts and Q4
report), strategy review
Acute Care Therapies,
AGM-related resolu-
tions, investments and
evaluation of Board
and CEO
Board meeting:
Approval of Annual
Report, including sus-
tainability information,
and Corporate Gover-
nance Report.
Q2
APRIL MAY JUNE
Audit and Risk
Commiee meeting
Board meeting: Interim
report (Q1), sustain-
ability, strategy review
Life Science, quality
updates, investments,
financing and legal
proceedings
Statutory Board
meeting: Election of
commiee members,
authorized signatories,
policies, etc.
Board meeting:
Group strategy,
investments, lessons
from the pandemic and
legal proceedings
Board of Directors
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2021 ANNUAL REPORT
Corporate Governance Report Corporate governance
• Ensure that there are sucient control mechanisms in place for
Getinge’s compliance with applicable rules and regulations, as
well as compliance with internal policies and guidelines;
• Ensure that the company’s external disclosures (incl. financial
reporting) are characterized by openness and objectivity, and
are correct, reliable and have a high level of relevance for the
target groups they are aimed at, and that there are appropriate
processes, controls and systems in place.
The Board is also to continuously evaluate the work of the CEO
and shall discuss this maer at one meeting every year without
the presence of anyone from the Getinge Executive Team. At
one of its meetings during the year, the Board is to meet with the
company’s auditors without the presence of the CEO or any other
individual from the Getinge Executive Team. The work of the Board
is governed mainly by the Swedish Companies Act, the Code and
the Board’s formal work plan.
The guidelines for the Board’s work are described in greater
detail in the Board’s formal work plan and annual plan, which are
reviewed and adopted each year. The formal work plan states how
many ordinary Board meetings are to be held (seven scheduled in
addition to the statutory meeting), the items to be addressed at
each ordinary Board meeting, the Chairman’s work assignments
and the division of responsibilities between the Board of Directors
and the President & CEO. In addition, the formal work plan states
what the President & CEO is to report to the Board of Directors,
and when and how the Board is to receive information and docu-
mentation to allow the Board to make well-founded decisions.
The President & CEO acts as rapporteur at the Board’s meetings.
The Group’s CFO is also responsible for submiing reports at the
Board meetings and the Group’s Head of Corporate Legal serves
as Secretary of the Board, with the exception of instances where
there is a conflict of interest or where it is otherwise inappropriate
for them to aend. Other senior executives also participate when
needed.
The formal work plan also contains guidelines for the work within
the Board commiees – for example, the commiees’ assign-
ments are established, the number of meetings to be held, the
maers to be addressed and how the commiees are to report to
the Board of Directors. The Board of Directors has established a
Remuneration Commiee and an Audit and Risk Commiee. The
Commiees are preparatory commiees and do not assume the
responsibility that lies with the Board as a whole (see more in the
section below on the Remuneration Commiee and the Audit and
Risk Commiee).
Distribution of roles among the Board of Directors
The Chairman’s role is to lead and manage the Board’s work and to
ensure that this is conducted in an organized and ecient manner.
It involves ensuring that the Board fulfills its responsibilities and
monitors the development of the company, and ensuring that
the Board continuously receives the information required for
the Board to perform its work with maintaned level of quality in
accordance with applicable regulations. The Chairman of the
Board does not participate in the operational management of the
company. Johan Malmquist was re-elected Chairman of the Board
at the 2021 AGM and Carl Bennet was re-elected Vice Chairman at
the Board’s statutory meeting.
Board of Directors’ evaluation of its work
The Board carries out an annual evaluation of its work for the
purpose of evolving its methods and eectiveness. The evaluation
of the work in 2021 was, as in previous years, based on a survey.
Additionally, the Chairman of the Board carried out individual
interviews with the Board members. The results and analysis
of this has been reported to the Board and followed up on with
discussions and identification of focus areas moving forward. It
can be noted that the Nomination Commiee has read the report
in its entirety as well as the Board’s conclusions.
Q3
JULY AUGUST SEPTEMBER
Audit and Risk
Commiee meeting
Board meeting:
Half-yearly report (Q2),
establishment maers
and investments, and
legal proceedings
Audit and Risk
Commiee meeting
Q4
OCTOBER NOVEMBER DECEMBER
Audit and Risk
Commiee meeting
Remuneration
Commiee meeting
Board meeting: Interim
report and nine-month
report (Q3), strategy
review Surgical
Workflows, invest-
ments, financing,
acquisition agenda and
legal proceedings
Three extraordinary
Board meetings*
Audit and Risk
Commiee meeting
Remuneration
Commiee meeting
Board meeting:
Financial plan, strategy
review Global Sales,
succession planning,
talent development
etc., risk assessment
and risk management
process (ERM), Ethics
& Compliance and one
extraordinary Board
meeting*
* Extraordinary Board meeting to address certain maers related to various topics such as new financial targets,
disputes, corporate acquisitions and other investments.
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2021 ANNUAL REPORT
Corporate governance Corporate Governance Report
BOARD OF
DIRECTORS’
WORK IN 2021
During the year, a total of 12 Board
meetings were held, with an aendance
rate of 100% of the AGM-elected members.
At its scheduled meetings, the Board
addresses fixed agenda items in accordance
with the Board’s formal work plan and annual plan.
Accordingly, the Board has addressed the Group’s
long-term objectives, strategy, risks and risk man-
agement, adopted corporate governance documents
and focused on sustainability issues, the financial plan
and investment plan, the annual accounts and financial
reports. The Board has also continuously addressed the
business situation and financial issues, ethics and compliance,
quality issues, regulatory issues, succession planning and talent
development, as well as general organizational topics. During the
year, at its scheduled and certain extraordinary Board meetings,
the Board has addressed maers related to legal proceedings,
corporate acquisitions, other investments and financing. On
a continuous basis, the pandemic’s impact on the Group, the
Group’s adaptation and management of the pandemic’s eects
have been addressed separately, but also integrated with other
issues addressed by the Board.
At one of its meetings, the Board met with the company’s
auditor without the presence of the CEO or any other individual
from executive management. The Board also continuously
evaluated the work of the CEO and devoted one meeting to this
maer without the presence of executive management.
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Remuneration Commiee
The Remuneration Commiee follows
wrien instructions and its duties include
preparing questions concerning remunera-
tion principles and remuneration as well as
other employment terms and conditions for
the President & CEO and other members
of the Getinge Executive Team. When
applicable, the Commiee also prepares
proposals to the Board on the guidelines
for the remuneration to senior executives,
which the Board submits for decision at
General Meetings.
The Commiee follows and evaluates
ongoing and completed variable remuner-
ation programs for the Getinge Executive
Team during the year and the application
of the guidelines for remuneration to
senior executives resolved at the AGM, and
prepares the Board’s remuneration report.
The Remuneration Commiee is a prepa-
ratory body in topics concerning succes-
sion planning and talent development.
BOARD COMMITTEES
Remuneration Commiee’s
composition and work 2021
The Commiee in 2021 comprised Board
members Johan Malmquist (Chairman),
Carl Bennet, Barbro Fridén, Dan Frohm and
Kristian Samuelsson. All members of the
Remuneration Commiee are independent
in relation to the company and the Getinge
Executive Team.
The Commiee shall, under normal
circumstances, hold three meetings per
year. In 2021, the Commiee held three
minuted meetings and remained in infor-
mal contact. The aendance of members
at the Commiee meetings is presented in
the table on page 44–45.
During the year, the Commiee’s work
focused in particular on evaluating guide-
lines for remuneration to senior executives,
the preparation of the remuneration report
and succession planing. In addition, the
Commiee worked during the year on
revising the targets for annual variable
remuneration and proposals on including
sustainability targets, and also reviewed
the program for long-term variable
remuneration (LTI bonus) and updated the
program for 2022.
The 2021 guidelines for the remuneration
to senior executives are presented on
pages 81–83 of the Annual Report.
The remuneration report was prepared
by the Board and will be presented to the
Annual General Meeting for resolution.
The remuneration report was prepared as
a separate report but is included in the an-
nual report document on pages 86–89. The
Board of Directors proposes that the AGM
adopt the new guidelines for the remuner-
ation to senior executives as presented on
pages 83–85.
The Board has established two commiees – to focus on remuneration, audit and risk
Audit and Risk Commiee
The Audit and Risk Commiee follows
wrien instructions and its activities are to
meet the requirements of the Swedish Com-
panies Act and the EU Audit Regulation. The
Audit and Risk Commiee is a preparatory
body in the contact between the Board and
the auditors, and continuously reports on its
work to the Board.
The Commiee’s tasks include assisting
the Nomination Commiee with preparing
proposals for resolutions by the General
Meeting on election of auditors and fees
to auditors, for which the Commiee is to
monitor that the auditor’s mandate period
does not exceed applicable rules, procure
the audit and present a recommendation to
the Nomination Commiee in accordance
with the EU Audit Regulation.
The Audit and Risk Commiee is also to
prepare guidelines on non-audit services
provided by the auditors and, when appli-
cable, approve such services in accordance
with these guidelines. The Commiee is
also to examine and monitor the indepen-
dence of the auditors and pay particular
aention to whether the auditors provide
other non-audit services and otherwise
evaluate the auditing activities.
The Commiee is involved in planning the
external audits and continuously consults
and confers with the external auditors.
Among the Commiee’s tasks is to examine
and monitor the consolidated financial
statements and prepare the financial re-
ports that the company publishes externally
as well as monitor the eciency of the
company’s internal control, risk manage-
ment (including financial risk management)
and internal audit. The Commiee also
discusses the company’s significant
financial risk exposure and measures to
be taken to limit, monitor and control such
exposures with the company’s auditor and
executive management. The Audit and
Risk Commiee follows the work of the
Ethics & Compliance function, internal
investigations and whistleblower cases and
has overall responsibility for monitoring the
implementation of an eective compliance
program. The Commiee shall, under
normal circumstances, hold six meetings
per calendar year.
Audit and Risk Commiee’s
composition and work 2021
In 2021, The Commiee comprised Board
members Johan Bygge (Chairman), Cecilia
Daun Wennborg, Sofia Hasselberg, Dan
Frohm and Malin Persson. All members of
the Commiee are independent in relation
to the company, executive management
and the company’s major shareholders,
with the exception of Dan Frohm, who is
not considered to be independent in rela-
tion to the company’s major shareholders.
The composition of the Commiee is set
up to meet the qualification criteria that is
placed on accounting or auditing expertise.
The Commiee held six minuted meet-
ings in 2021, and informal contact when
necessary. The aendance of members at
the Commiee meetings is presented in
the table on page 44–45. The company’s
auditors participated in all Commiee
meetings. Jointly with the auditors, the
Commiee discussed and established
the scope of the audit. Additionally, the
company’s Chief Ethics & Compliance
Ocer and internal auditor participated in
meetings with the Commiee to the extent
deemed relevant.
The Commiee has continuously ad-
dressed all the issues that the Commiee
must address in accordance with the formal
work plan. During the year, the Commiee
particularly focused on financing-related
issues, development of internal control, and
the work of the Corporate Internal Audit
and the Ethics & Compliance functions,
follow-up of specific issues identified in
conjunction with risk assessments, internal
control and internal audit.
44
2021 ANNUAL REPORT
Corporate governance Board of directors
Board of directors
Name
Function
Johan Malmquist
Board member elected
by AGM, Chairman of the
Board
Chairman of the
Remuneration Commiee
Carl Bennet
Board member elected by
AGM, Vice Chairman of
the Board
Member of the
Remuneration Commiee
Johan Bygge
Board member elected
by AGM
Chairman of Audit and
Risk Commiee
Cecilia Daun Wennborg
Board member elected
by AGM
Member of the Audit and
Risk Commiee
Barbro Fridén
Board member elected
by AGM
Member of the
Remuneration Commiee
Year of birth 1961 1951 1956 1963 1956
Education B.Sc. (Business Adminis-
tration)
B.Sc. (Business Admin-
istration), med. Dr. h.c.,
tech.Dr. h.c.
B.Sc. (Business Adminis-
tration)
M.Sc. (Business Admin-
istration)
M.D., Phd.
Nationality / Elected Swedish/2016 Swedish/1989 Swedish/2007 Swedish/2010 Swedish/2017
Board assignments Chairman of Arjo AB.
Board member of Elekta
AB (publ.), Mölnlycke
Health Care AB, the
Dunker Foundations,
Stena Adactum AB,
Trelleborg AB and
Chalmers University of
Technology Foundation.
Chairman of the Board of
Elanders AB and Lifco AB.
Vice Chairman of Arjo AB,
Board member of Holmen
AB and L E Lundberg-
företagen AB.
Chairman of the Board of
Nobina AB (publ), Scandi
Standard AB (publ) and
Guard Therepeutics AB
(publ), Vice Chairman of
Third Swedish Pension
Fund (AP3), Board member
of Baltic Deep Water Life,
Lantmännen, CapMan Plc
and Praktikertjänst AB.
Board member of, among
others, ICA Gruppen AB,
Loomis AB, Bravida
Holding AB, Oncopeptides
AB, Atvexa AB, Hotell
Diplomat AB, Stielsen
Oxfam Sverige and mem-
ber of Swedish Securities
Council.
Board member of, among
others, Apoteket AB,
European Sperm Bank
A/S, Sophiahemmet,
WeMind AB and the
Swedish Sea Rescue
Society.
Professional experience,
previous assignments and
other information
President and CEO
of Getinge 1997–2015.
Former Business Area
Director within Getinge,
President of Getinge’s
French subsidiary,
President of subsidiaries
in the Electrolux Group.
CEO and Chairman of
Carl Bennet AB. Former
President and CEO of
Getinge 1989–1997. Chair-
man of Getinge’s Board of
Directors 1997–2019.
Former Chairman of
PSM International China,
Chairman of EQT Asia
Pacific, Venture Partner
of Prorsum AG Venture
Fund, COO of EQT, Board
member of Anticimex and
I-Med Ltd, CFO of Inves-
tor AB, Executive Vice
President of Electrolux
and CFO of Electrolux.
Former Vice President of
Ambea AB, President of
Carema Vård och Omsorg
AB, acting President of
Skandiabanken, Head of
Swedish Operations at
Skandia and President of
Skandia Link, and Board
member of Atos Medical
Holding AB (publ), Hoist
Finance AB and Sophia-
hemmet.
CEO of Sidra Medicine,
and consultant and
advisor. Former Board
member of, among
others, Vitrolife AB, Helsa
AB, Life Clean AB and
SciBase AB and senior
positions in health care
such as divisional head at
Astrid Lindgren Children’s
Hospital, Karolinska Uni-
versity Hospital and CEO
of Sahlgrenska University
Hospital.
Aendance at meetings
*)
Board meetings 12/12 12/12 12/12 12/12 12/12
Remuneration
Commiee
3/3 3/3 – – 3/3
Audit and Risk Commiee
– – 6/6 6/6 –
Independence
1)
Dependent/independent in
relation to Getinge and its
management and in relation
to major shareholders
Independent in relation
to the company,
executive management
and major shareholders.
Dependent in relation
to major shareholders,
owner and Chairman of
Getinge’s principal owner
Carl Bennet AB. Indepen-
dent in relation to Getinge
and its management.
Independent in relation to
the company, executive
management and major
shareholders.
Independent in relation
to the company,
executive management
and major shareholders.
Independent in relation
to the company,
executive management
and major shareholders.
Remuneration andholdings
Total remuneration
in 2021, SEK 000s
1,615, of which 140 com-
prises fees for the Remu-
neration Commiee
730, of which 100 com-
prises fees for the Remu-
neration Commiee
910, of which 280 com-
prises fees for the Audit
and Risk Commiee
770, of which 140 com-
prises fees for the Audit
and Risk Commiee
730, of which 100 com-
prises fees for the Remu-
neration Commiee
Holdings in Getinge AB
(own and related parties
2)
)
Shareholding (own and
related parties): 90,000
Class B shares.
Synthetic options:
144,927, aributable to
Class B shares.
3)
Shareholding (own and
related parties): Holds
18,217,200 Class A shares
and 36,448,434 Class B
shares.
Shareholding (own and
related parties): 12,200
Class B shares.
Synthetic options:
144,927, aributable to
Class B shares.
3)
Shareholding (own and
related parties): 4,500
Class B shares.
Synthetic options:
144,927, aributable to
Class B shares.
3)
Shareholding (own and
related parties): 1,770
Class B shares.
Synthetic options:
72,463, aributable to
Class B shares.
3)
*) Johan Stern stepped down as a Board member at the 2021 AGM and prior to that aended three of three Board meetings and one of one
Remuneration Commiee meeting.
1) See the composition of the Board on page 40.
2) See definition of related parties on page 46.
3) All of the synthetic options have been exercised following the end of the fiscal year.
45
2021 ANNUAL REPORT
Board of directors Corporate governance
Name
Function
Dan Frohm
Board member elected
by AGM
Member of the Audit
and Risk Commiee
and Remuneration
Commiee
Sofia Hasselberg
Board member elected
by AGM
Member of the Audit and
Risk Commiee
Maias Perjos
Board member elected
by AGM
President & CEO
Malin Persson
Board member elected
by AGM
Member av Audit and
Risk Commiee (until
2020 AGM member of
the Remuneration
Commiee)
Kristian Samuelsson
Board member elected
by AGM
Member of the
Remuneration
Commiee
Year of birth 1981 1983 1972 1968 1977
Education M.Sc. (Industrial
Engineering and
Management)
M.D. M.Sc. (Industrial
Engineering and Man-
agement)
M.Sc. (Industrial
Engineering and Man-
agement)
Professor, M.D., PhD, MSc
Nationality / Elected Swedish/2017 Swedish/2017 Swedish/2017 Swedish/2014 Swedish/2021
Board assignments Board member of Arjo
AB, Carl Bennet AB,
Elanders AB, Lifco AB
and Swedish- American
Chamber of Commerce,
Inc.
Board member of Clinic
Friends AB and Preglife
AB.
Chairman of the Board of
AB Chalmers Student-
kårs företagsgrupp and
Universeum AB. Board
member of companies in-
cluding Hexpol AB, Peab
AB, Ricardo PLC, Beckers
Group, OX2 AB (publ),
Oddwork Sweden AB and
Hydroscand Group.
Professional experience,
previous assignments and
other information
CEO of DF Advisory LLC.
Former management
consultant at Applied
Value LLC in New York.
Investment director of
Bonnier Ventures. Former
Director of Marketing and
Digital Operations Lead at
MSD Sweden. Vast expe-
rience as a senior adviser,
providing strategic, oper-
ational and organizational
advice to organizations
across the full health
care value chain. Former
management consultant
at McKinsey & Company,
doctor at Karolinska Uni-
versity Hospital and Board
member of Atos Medical
Holding AB (publ).
President & CEO
of Getinge. Former CEO
of Coesia Industrial
Process Solutions (IPS)
and head of Coesia Inter-
national. Senior positions
at FlexLink AB including
the role of CEO.
CEO and owner of Accu-
racy AB. Former CEO of
the Chalmers University
of Technology
Foundation, many years’
experience in major
Swedish industrial enter-
prises such as the Volvo
Group. Former Board
member of Hexatronic
Group AB, EVRY ASA,
Mekonomen AB and
Magnora AB.
Professor of orthopaedic
surgery at the University
of Gothenburg and senior
consultant in orthopaedic
surgery at Sahlgrenska
University Hospital.
Experience from health-
care with evidence-based
medical research and
interdisciplinary research
in areas such as artificial
intelligence (AI) and
digitization.
Aendance at meetings
Board meetings 12/12 12/12 12/12 12/12 9/9 (joined at the 2021
AGM)
Remuneration Commiee 3/3 – – 1/1 (served as member
only until AGM)
2/2 (joined at the 2021
AGM)
Audit and Risk Commiee 6/6 6/6 – 4/4 (joined aer statutory
Board meeting)
–
Independence
1)
Dependent/independent in
relation to Getinge and its
management and in relation
to major shareholders
Dependent in relation
to major shareholders,
Board member of Getinge’s
principal owner Carl
Bennet AB. Independent in
relation to Getinge and its
management
Independent in relation to
the company, executive
management and mejor
shareholders.
Dependent in relation to
the company and
executive management in
capacity as President and
CEO of Getinge. Indepen-
dent in relation to major
shareholders
Independent in relation to
the company, executive
management and major
shareholders.
Independent in relation to
the company, executive
management and major
shareholders.
Remuneration and holdings
Total remuneration
in 2021, SEK 000s
870, of which 100 comprises
fees for the Remuneration
Commiee and 140 com-
prises fees for the Audit and
Risk Commiee.
770, of which 140 com-
prises fees for the Audit
and Risk Commiee
– 770, of which 140 com-
prises fees for the Audit
and Risk Commiee
730, of which 100 com-
prises fees for the Remu-
neration Commiee
Holdings in Getinge AB (own
and related parties
2)
)
Shareholding (own and
related parties): 149,510
Class B shares.
Synthetic options:
144,927, aributable to
Class B shares.
3)
Holds no shares. Shareholding (own and
related parties): 65,000
Class B shares
Synthetic options:
579,710, aributable to
Class B shares.
3)
Shareholding (own and
related parties): 3,512
Class B shares.
Synthetic options:
144,927, aributable to
Class B shares.
3)
Holds no shares.
1) See the composition of the Board on page 40.
2) See definition of related parties on page 46.
3) All of the synthetic options have been exercised following the end of the fiscal year.
46
2021 ANNUAL REPORT
Corporate governance Board of directors
Name
Function
Rickard Karlsson
Ordinary Board member
appointed by employee
organization
Åke Larsson
4)
Ordinary Board member
appointed by employee
organization
Fredrik Braborn
Deputy appointed by
employee organization
Peter Jörmalm
3)
Deputy appointed by
employee organization
Year of birth 1970 1966 1976 1959
Education M.Sc. (Electrical
engineering)
Nationality / Elected Swedish/2013 Swedish/2014 Swedish/2020 Swedish/2012
Board assignments Board member of
Oxelerate AB.
Professional experience,
previous assignments and
other information
Assembly at Getinge
Sterilization AB. As-
signments on Getinge’s
Board: Regular Board
member since 2014.
Deputy 2013–2014.
Specialist, Research
& Development at
Maquet Critical Care
AB. Assignments on
Getinge’s Board: Regular
Board member 2016–2018
and from 2020. Deputy
2014–2016 and 2018–2020.
Workshop technician,
Manufacturing at
Getinge Disinfection AB.
Materials Planner, Supply
Chain department at
Getinge Sterilization.
Assignments on Getinge’s
Board: Regular Board
member 2014–2016
and 2018–2020. Deputy
2012–2014, 2016–2018 and
from 2020.
Aendance at meetings
Board meetings 11/12 12/12 12/12 12/12
Remuneration Commiee – – – –
Audit and Risk Commiee – – – –
Independence
1)
Dependent/independent in
relation to Getinge and its
management and in relation
to major shareholders
– – – –
Remuneration and
holdings
Total remuneration in 2021,
SEK 000s
– – – –
Holdings in
Getinge AB
(own and related parties
2)
)
Holds no shares. Holds no shares. Holds no shares. Holds no shares.
Board of Directors, cont.
Definition of related parties, linked to shareholdings:
Related parties are legal entities directly or indirectly controlled by the
Board member or CEO or by his or her related parties. In the case of phys-
ical relatives, the spouse/cohabiting partner, children under custody and
other relatives with whom households have been shared for at least one
year are covered.
1) See the composition of the Board on page 40.
2) See also the definition of related parties above.
3) Became deputy appointed by employee organization on June 26, 2020, prior to that elected regular Board member
4) Became regular Board member appointed by employee organization on June 26, 2020, prior to that elected deputy
47
2021 ANNUAL REPORT
External auditor Corporate governance
President & CEO and Getinge Executive Team
Getinge AB’s auditors are elected at the AGM. The auditors
perform an audit of the Annual Report, financial statements and
the consolidated financial statements as well as the management
by the Board and CEO in accordance with generally accepted
auditing standards. Aer every fiscal year an auditor’s report for
the Parent Company and a Group auditor’s report are presented to
the General Meeting. The auditors also review Getinge’s nine-
month report. The Auditor in Charge and co-auditor participate in
all of the Audit and Risk Commiee’s meetings and report to the
Commiee and Board of Directors on their audit.
External auditors in 2021
At the 2021 AGM, the registered auditing firm Öhrlings Pricewa-
terhouseCoopers AB was re-elected auditor. Öhrlings Pricewater-
houseCoopers AB has been the company’s appointed auditing firm
since 2008. Up until the 2021 AGM, authorized public accountant
Johan Rippe was Auditor in Charge, and authorized public accoun-
tant Thomas Hilmarsson was co-auditor. In connection with the
AGM, the authorized public accountant Peter Nyllinge was elected
as the new Auditor in Charge and authorized public accountant
Karin Olsson as the new co-auditor.
The current mandate period expires at the 2022 AGM. In addition
to standard audit assignments, Öhrlings PricewaterhouseCoo-
pers AB provides advisory services and performs investigations.
Such assignments take place in accordance with the regulations
determined by the Audit and Risk Commiee for approval of the
nature and scope of the services and the fees for such services.
The performed assignments are not deemed to have given rise to a
conflict of interest. Details about the amounts of remuneration paid
to auditors are presented in Note 5 of the Annual Report.
External auditor
President & CEO
The Board of Directors has delegated the ongoing management
of Getinge AB and the overall management of the Group’s opera-
tions to the President & CEO, including an authorization to make
decisions or take control in all issues that are not exclusively under
the authority of the Board of Directors. The President & CEO heads
up Getinge’s operations through the Getinge Executive Team.
It is the President & CEO’s responsibility to implement and ensure
that the strategies, business plans and operational objectives
agreed on by the Board are carried out and that eective gover-
nance and control are maintained. The President & CEO is also
responsible for presenting reports at Board meetings and keeping
the Board of Directors and its Chairman up to date on Getinge’s
financial position, development, risks and opportunities. The
President & CEO’s role, areas of responsibility and authorizations
are described in more detail in the instruction for the CEO and for
financial reporting.
Getinge Executive Team and delegation
Getinge’s President & CEO is supported by the Getinge Executive
Team in conducting Getinge’s operations. The Getinge Executive
Team comprises the business area presidents, the head of the
global sales organization and the heads of the Group-wide support
functions.
The Getinge Executive Team meets at least six times a year to
establish and follow up on strategic plans, business plans and
results, major projects, questions and requests to be addressed by
the Board for decision, risks and coordination of other issues of a
strategic nature or Group-wide importance, including climate and
sustainability issues and regulatory quality issues. In addition, a
quality management audit is conducted twice a year, including a
review of the quality management system.
The President & CEO delegates detailed roles and areas of re-
sponsibility to each member of the Getinge Executive Team. These
individuals then structure their respective management teams,
relevant decision and draing bodies, as well as delegated roles
and responsibility in their respective areas.
Other important forums
A requirement for eective corporate governance and shared
prioritization of initiatives and resources is good cooperation
throughout the organization. Internally, Getinge has a constant
need for coordination and interaction between the various func-
tions and competencies in the global organization. Cross-func-
tional forums and meeting structures at Group level have been
established to ensure support and coordination and that maers
related to quality and sustainability for example are considered in
all relevant decision-making.
To assist the President & CEO and members of the Getinge
Executive Team in making well-founded decisions and to ensure
that they were supported and well integrated in the daily operations,
a number of forums have been established, including: the Insider
Commiee, the Disclosure Commiee, the Ethics Commiee, the
Sustainability Board, the Governance, Risk & Compliance Com-
miee, the Sponsor & Donations Commiee, the STIP Steering
Commiee and the IT Board.
Each business area, the global sales organization and the
corporate and support functions create their own structures
for ensuring that strategically important maers, responsible
leadership, product quality, and climate and sustainability issues
are integrated and are natural parts of the operations.
Getinge Executive Team 2021
At year-end 2021, Getinge Executive Team comprised ten individuals.
These people who are members of the Getinge Executive Team
are presented on pages 48–49 in the Annual Report. The Getinge
Executive Team held six ordinary meetings in 2021 and remained in
continuous contact between meetings. The focus of the meetings
was mainly the Group’s strategic and operational performance,
monitoring results and quality issues. During the year, the Getinge
Executive Team placed significant focus on the pandemic’s impact
on the Group, the Group’s acquisition agenda, the Group’s sustain-
ability activities and monitoring risks and opportunities, as well
as safeguarding eciency measures and synergies. The Getinge
Executive Team followed the developments in the Group and the
business environment very carefully and, during some periods, held
weekly consultation and information meetings.
48
2021 ANNUAL REPORT
Corporate governance Getinge Executive Team
Carsten Blecker (1966)
Chief Commercial Ocer
PhD in Dentistry; Doctorate in Business Administration
German citizen
Employed at Getinge since 2014
Shareholdings (own and related parties): 3,500 Class B shares
Synthetic options: 144,927, aributable to Class B shares
2)
Previous experience: Carsten Blecker joined Getinge in 2014 as President of WEMEA Medical Systems
and was appointed President EMEA for Getinge in 2016. Carsten Blecker was previously the Vice
President of Biomet EMEA Dental Business. He has also held positions at McKinsey & Company,
Kimberly-Clark and Medtronic.
Getinge Executive Team
Maias Perjos (1972)
President & CEO
M.Sc. (Industrial Engineering and Management).
Swedish citizen
Employed at Getinge since 2017
Shareholdings (own and related parties): 65,000 Class B shares
Synthetic options: 579,710, aributable to Class B shares
2)
Previous experience: Senior positions at Coesia 2012–2017, including CEO of Coesia IPS Division
and Coesia International. CEO of Flexlink 2006–2016 where he started his career in 1998 and,
including serving as business area manager 2003–2006.
Lars Sandström (1972)
CFO
B.Sc. (Business Administration)
Swedish citizen
Employed at Getinge since 2017
Shareholdings (own and related parties): 14,359 Class B shares
Synthetic options: 289,855, aributable to Class B shares
2)
Previous experience: Most recently as Senior Vice President Group reporting, Tax & Control in the
Volvo Group (2015–2017). Several senior positions within Scania such as Vice President
Financial Services, Head of Group Financial reporting and Head of Group Reporting
and Control. Between 2010–2012 CFO Swedish Orphan Biovitrum AB.
Stéphane Le Roy (1977)
President Surgical Workflows
Masters Degree in Industrial Engineering from the Ecole Nationale des Ponts et Chaussées, France
French citizen
Employed at Getinge since 2012
Shareholdings (own and related parties): 2,500 Class B shares
Synthetic options: Holds no synthetic options
Previous experience: Stéphane Le Roy most recently served as the Regional President of South West
Europe within Getinge’s global sales organization. Stéphane joined Getinge in 2012 as country manager
for Infection Control in France. Between 2006 and 2012, he was business unit manager for CT Scanners
for Siemens Healthcare in France. Before that, he held several product management positions and supply
chain assignments within the field of medical imaging at GE Healthcare.
Jens Viebke
1)
(1967)
President Acute Care Therapies
Executive MBA, PhD (Polymer Technology) and M.Sc. (Chemical Engineering).
Swedish citizen
Employed at Getinge since 2010
Shareholdings (own and related parties): 1,100 Class B shares
Synthetic options: 217,391, aributable to Class B shares
2)
Previous experience: Jens Viebke served as Chief Technology Ocer of Acute Care Therapies at
Getinge until June 2016. He had previously held positions at GE Healthcare Life Sciences.
1) Elin Frostehav succeeded Jens Viebke as President, Acute Care Therapies on April 1, 2022.
2) All of the synthetic options have been exercised following the end of the fiscal year.
49
2021 ANNUAL REPORT
Getinge Executive Team Corporate governance
Lena Hagman (1965)
Executive Vice President, Quality Compliance, Regulatory & Medical Aairs
B.Sc. (Chemistry and Textile Engineering)
Swedish citizen
Employed at Getinge since 2010
Shareholdings (own and related parties): 3,656 Class B shares
Synthetic options: 217,391, aributable to Class B shares
2)
Previous experience: Until year-end 2015, Lena Hagman was Senior Vice President, Group Quality
& Regulatory Compliance for Getinge. Lena Hagman was also responsible for the Cardiopulmonary
product segment between September 2018 and February 2022. Lena has a broad background from
the field of quality and her experience includes working at companies including Capio, Neoventa
Medical AB and Mölnlycke Healthcare.
Jeanee Hedén Carlsson (1966)
Executive Vice President Communications & Brand Management
B.Sc. (Business Administration)
Swedish citizen
Employed at Getinge since 2017
Shareholdings (own and related parties): 2,800 Class B shares
Synthetic options: 144,927, aributable to Class B shares
2)
Previous experience: Leading management positions within Communication and Marketing
in the Volvo Group and Volvo Car Group.
Harald Castler
1)
(1957)
President, Life Science
M.Sc. (Chemical Engineering)
Swedish citizen
Employed at Getinge since 1988
Shareholdings (own and related parties): 15,000 Class B shares
Synthetic options: 217,391, aributable to Class B shares
2)
Previous experience: Leading positions in Getinge for more than 30 years, including Sales
and Marketing director for Infection Control and President for Getinge International.
Magnus Lundbäck (1969)
Executive Vice President Human Resources & Sustainability
PhD (Strategy and Organization) and Licentiate of Science
Swedish citizen
Employed at Getinge since 2017
Shareholdings (own and related parties): 2,142 Class B shares
Synthetic options: 217,391, aributable to Class B shares
2)
Previous experience: SVP Human Resources & Sustainability at Gunnebo Group. He has previous-
ly served as Executive Vice President Human Resources and Sustainability at Getinge and as Vice
President of Human Resources at Volvo Car Corporation.
Anna Romberg (1979)
Executive Vice President Legal, Compliance & Governance
PhD (Corporate Governance and Compliance) and M.Sc. in Economics and Business Administration
Finnish citizen
Employed at Getinge since 2020
Shareholdings (own and related parties): 4,500 Class B shares
Synthetic options: Holds no synthetic options
Previous experience: Anna Romberg has served as VP Ethics and Compliance for Cargotec Oyj, and
in various governance and compliance roles at Telia Company AB. She has also supported numerous
global companies, with regards to governance and compliance maers, on a consultancy basis. She is
one of the founders of the Nordic Business Ethics Initiative.
1) Eric Honroth succeeded Harald Castler as President, Life Science on April 1, 2022.
2) All of the synthetic options have been exercised following the end of the fiscal year.
50
2021 ANNUAL REPORT
Corporate governance Building blocks in the Getinge corporate governance model
Governing bodies
GETINGE’S CORPORATE GOVERNANCE AND ASSURANCE FRAMEWORK
• Getinge AB’s Annual General Meeting, external auditor and Nomination Commiee
• Getinge AB’s Board of Directors, Remuneration Commiee, Audit and Risk Commiee and
Corporate Internal Audit
• The President & CEO assisted by the Getinge Executive Team and key forums/commiees
Getinge’s Corporate Governance Framework Getinge’s Assurance framework
Steering principles
and documents
Operational
governance
Legal Entity
Governance
• Vision, mission, purpose,
cultural and brand values
• Strategic priorities
• Quality and Regulatory
Compliance (QcRM)
• Policy framework and global
requirements
First pillar Management
has the primary responsibil-
ity for owning and managing
risks associated with day-to-
day operational activities.
Other accountabilities
assumed under the first pillar
include design, operation
and implementation of inter-
nal control activities
Second pillar: Functions
in the second pillar enable
the identification of emerg-
ing risks in daily operation
of the business. It does this
by providing guidance in the
form of frameworks, policies
and tools for supporting risk
management and monitor-
ing compliance.
• Organization, roles and
responsibilities
• Strategic and tactical
annual cycle
• Corporate meeting
forums and escalation
• Basic shared processed
and steering documents
• Legal structure, governance
of subsidiaries/legal
entities to comply with legal
and other requirements
Management
Corporate
Internal Audit
Third pillar: Functions
in the third pillar provide
objective and independent
assurance (internal audit).
The main purpose of the
functions belonging to the
third pillar is to evaluate
the eciency of the first
and second pillar functions.
They are also responsible
for reporting to the Board
and the Audit and Risk
Commiee, in addition to
providing assurance to
regulators and external
auditors that the structure
and implementation of
the organization’s control
culture is eective.
(4) External audit
Building blocks in the Getinge corporate governance model
Eective corporate governance creates an infrastructure that
enables beer quality in the decisions made by those who
lead the operations. Focus on high level of product quality, the
environment and sustainability, responsible leadership and ethical
decision-making contributes to sustainable business operations
and long-term value creation.
In addition to the corporate governance structure for Getinge
AB described above and the formal corporate bodies, three prima-
ry building blocks are identified in Getinge’s corporate governance
model: (i) steering principles and documents, (ii) operational gov-
ernance, and (iii) governance of legal entities, which are described
in more detail below. Combined with the control of product-related
quality and regulatory compliance as well as Getinge’s sustainabil-
ity agenda, the building blocks for Getinge’s corporate governance
model creates conditions for meeting targets, monitoring and
control, which supports the Board’s agenda.
In 2021, Getinge worked on ensuring that its operating model is
well-defined and implemented throughout the Group. Activities
were also carried out to strengthen the governance of the Group’s
legal entities. A straightforward and easily accessible framework
for how the Group is governed, how decisions are made, and roles
and responsibilities was implemented (GetBasics). During the
year, the Group focused on its work related to culture and respon-
sible leadership to ensure that employees and the organization
comply with internal steering documents and principles.
51
2021 ANNUAL REPORT
Building blocks in the Getinge corporate governance model Corporate governance
Sustainability framework
Getinge’s sustainability ambitions, which are described in the
company’s Sustainability Framework, cover the focus areas of
Quality Culture, Passionate Employees, Environmental & Social
Engagement and Business Ethics & Responsible Leadership.
Getinge’s work in these areas comprises an integrated component
of the company’s strategy and culture, and is also integrated in
the business activities. Separate Ethics & Compliance, QcRM
and HR & Sustainability functions have been established that are
responsible for developing strategies, policies, guidelines, targets,
processes and tools related to their respective areas, which are
implemented and integrated throughout the business activities.
Cross-functional forums have been established to ensure harmo-
nization. Read more about the company’s Ethics & Compliance
function in the Assurance framework, risks and risk management
section. Getinge has prepared a sustainability report that is sepa-
rate from the Annual Report and a separate ESG Addendum
according to GRI Standards. The auditor’s statement on the
statutory sustainability report is presented on page 74. The Board
supervises the company’s sustainability and responsible leader-
ship strategy, and information on risks and earnings is presented
to the Board once a year, or more oen as necessary.
Getinge’s operating model
Getinge’s operating model, with a focus on decentralized de-
cision-making under Group-wide frameworks and strategies,
provides guidance for Getinge’s corporate governance.
Business areas
Getinge’s operating activities comprise the business areas of
Acute Care Therapies, Life Science and Surgical Workflows. The
business areas are responsible for developing the portfolio oering
and its potential value for the customers.
The business areas are responsible for (i) their own daily oper-
ations and respective integrated financial results, (ii) developing
their product portfolios and oerings, and (iii) their respective stra-
tegic agendas. In addition to financial responsibility, each business
area has full responsibility for ensuring that the operations are
conducted in accordance with applicable laws and rules, and for
ensuring that quality and regulatory requirements are met.
Global sales and service organization
The operating activities also include a global shared sales organi-
zation that aims to capitalize on synergies in sales. The global sales
organization, with a few exceptions, is responsible for the sales
of each business area, and has total responsibility for conducting
sales in the various regions and for developing the operations in
accordance with market and customer needs and trends. The
global sales organization coordinates major strategic decisions
with the business areas. Ultimately, the global sales organization
has overall responsibility for ensuring that sales are conducted
in accordance with applicable legislation and rules in the sales
regions, and for ensuring that quality and regulatory demands are
met in their operations.
Central support functions
Centrally, Getinge has certain shared competence and support
functions – organized into corporate functions and group support
functions. These functions are responsible for monitoring and
supporting the development of the organization.
Corporate functions provide control within Getinge in a number
of areas at Group level: Corporate Finance (including Treasury,
Tax, Corporate Control and Risk Management), CorporateHR
& Sustainability, Corporate Quality compliance, Regulatory &
Medical aairs, Corporate Communications, Brand Management,
Corporate Legal, Compliance & Governance and Research &
Business Development (including M&A). The corporate functions
are responsible for developing policies, guidance, processes and
structures for issues that apply to the specific corporate function.
The group support functions are competence and support func-
tions for coordination in a number of areas such as: HR, Marketing
and Communications, Quality (QcRM), Logistics, Business Services
(including shared services and IT), Purchasing, Legal, Ethics,
Compliance and Governance, and Financial Services.
Legal entity governance
Getinge comprises a large number of separate legal entities
throughout the world. Each legal entity within Getinge functions
as part of an operational group, and is organizationally aliated
with one of the business areas, the global sales organization, the
corporate functions or the group support functions.
Corporate governance relating to Getinge’s legal entities must be
eective and designed to ensure compliance with applicable local
laws, regulations, other legal requirements and intra-group rules.
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2021 ANNUAL REPORT
Corporate governance Building blocks in the Getinge corporate governance model
Getinge guiding principles and steering documents
Guiding principles
Getinge’s expressed vision, mission, purpose, goals, brand promise
and cultural core values are used as guiding principles for its
operations. The Board establishes the general long-term strategy,
which provides the direction for the coming years, as well as an-
nual operational and financial targets. Read more about Getinge’s
strategy on pages 14–33 of the 2021 Annual Report.
The strategy review process comprises an annual audit and
review of the strategy. In addition, the Board reviews the strategy
for each of the business areas and the global sales organization
once a year. The financial plan is based on the strategic initiatives.
The President & CEO establishes the targets for the operations
based on decisions by and guidance from the Board of Directors.
Each of the respective functions’ goals are set on the basis of the
established overall objectives.
The three business areas are responsible for their results in the
Group. The business areas, the global sales organization, corporate
functions and certain group functions hold regular meetings for
operational review with the Getinge Executive Team to follow up
on developments and results, plans, risks and opportunities. In
addition, monthly follow-ups of economic targets and forecasts
are carried out together with the business areas and the global
sales organization.
Steering documents – framework
The Code of Conduct – Responsible leadership – provides guide-
lines for how Getinge works. It is summarized in six principles:
(i) Always act with honesty, fairness and integrity, (ii) Stand up
and speak up when something isn’t right, (iii) Act respectfully to
protect confidentiality, privacy and information, (iv) Take care
of each other, (v) Take care of the world, and (vi) Act together to
protect our stakeholders.
The Code of Conduct is based on Getinge’s global policies. The
Board of Directors has adopted 14 global policies that contain
binding rules and general guidance for conduct within the Group.
For each of the policy documents, more detailed and guiding
directives and guidelines are issued (where appropriate).
In addition to the above global policies on ethical business
conduct, there are separate quality and environmental policies
issued by the QcRM organization, as well as Getinge’s sustainabil-
ity agenda.
The Code of Conduct and all policy documents, directives and
guidelines are available on the Group’s intranet and are published
in a database for steering documents that is available to all em-
ployees. The Code of Conduct is also publicly available at
www.getinge.com/int/about-us/business-ethics/code-of-conduct/.
Most of the global policy documents are also available on the
above external website.
The policies are approved by the Board of Directors and revised
at least every second year or as required. Directives are decided by
the President or the Getinge Executive Team member responsible
for the area aer being accepted by the entire Getinge Executive
Team.
Getinge also has a corporate governance policy, the purpose of
which is to clarify Getinge’s corporate governance model, roles and
areas of responsibility, as well as the system for decision-making
that applies within the Group. The policy is supplemented by more
detailed guidance in directives and instructions.
Always act with honesty, fairness
and integrity
Act respectfully to protect confidentiality, privacy
and information
Take care of each other
• Global Anti Bribery Corruption Policy
• Global Anti-Trust & Fair Competition Policy
• Trade Compliance Policy
• Insider Policy
• Global Purchasing Policy
• Global Intellectual Property Policy
• Communication Policy
• People Policy
• Human Rights Policy
• Global Data Protection Policy
Take care of the world
Stand up and speak up when
something isn’t right
Act together to protect
our stakeholders
• Human Rights Policy
• Global Anti Bribery Corruption Policy
• Sustainability Policy
• Human Rights Policy
• Speak up Line (whistleblower function)
• Communication Policy
• Global Intellectual Property Policy
• Global Purchasing Policy
SIX PRINCIPLES OF CODE OF CONDUCT
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2021 ANNUAL REPORT
Control framework, risks and risk management Corporate governance
Risk management framework
Getinge conducts operations in 40 countries and supplies prod-
ucts and services in a total of 132 countries through own compa-
nies and distributors. This means that the company is exposed
to a number of risks and opportunities, which Getinge is actively
addressing in a systematic manner.
Getinge has a framework for managing risks that could
aect the fulfillment of the Group’s targets and strategies. This
framework entails, for example, that the Getinge Executive Team
conducts an annual evaluation of material risks and their eect on
Getinge’s operations, and decides on measures to reduce risks and
their potential eects. This work is continuously monitored by the
Getinge Executive Team during the year.
The Getinge Executive Team’s risk evaluation is reported to the
Board of Directors and serves as a key starting point in determin-
ing the areas that Corporate Internal Audit is to examine.
The three business areas are fully responsible for their results.
In addition, the three business areas and the sales organization
are owners of risk in their respective areas. Accordingly, they have
their own risk-management structures in their respective oper-
ations. Corporate functions assist the business areas and sales
organization in managing risks in a number of areas by providing
governance. The group support functions are responsible for
supporting and coordinating the development of the organization
and driving synergies in their respective areas.
A number of established forums that focus on risks of a
particular nature conduct regular evaluation and monitoring
to ensure correct coordination and management from a Group
perspective. In addition to quarterly risk monitoring with the
business areas and global sales organization, forums such as the
Ethics Commiee, the Governance Risk & Compliance forum,
the Sustainability Board, the forum for the Group’s risk managers
and the Cyber Security Forum have been established to identify,
manage and monitor risks.
Risk assessment
By conducting quantitative and qualitative risk analyses based on
the oering and operations, Getinge identifies the key risks that
could prevent the achievement of business and financial targets.
In addition, several units in each business area and in the sales
organization are analyzed to gain a more detailed understanding
of the actual compliance of existing rules and regulations.
Accordingly, measures to minimize identified risks are formulated
centrally within the Group.
The overall responsibility for identifying and addressing
potential risk areas lies with the Getinge Executive Team and the
business operations. The Ethics & Compliance and Corporate
Internal Audit functions assist with support and ongoing moni-
toring as well as investigations and internal audit, which help to
identify risk.
In 2021, Getinge has continued its eorts to strengthen risk
identification, preventive measures and management through Cor-
porate Internal Audit and the Corporate Risk Management func-
tion. It is important to note that the management of the Group’s
risks is based on Getinge’s decentralized structure. The operations
are knowledgeable about the risks inherent in the Group.
The Getinge Executive Team has identified the below stated
six priority risk areas resulting from the Group-wide analysis
performed in 2021. In addition to these priority risks, regular
measures are taken to manage other risks according to needs and
resource availability. Each of the primary risk areas is owned by a
specific member of the Getinge Executive Team and work is being
conducted to identify specific risks in each area and develop plans
to prevent risks, mitigate the potential eects and deliver on these
plans.
It is important to note that the risks presented on the follow-
ing pages are not an exhaustive description of the Group’s risk
exposure. However, these are the risks that have been deemed to
be most relevant for the Group to actively manage.
Getinge’s insurance program
Strategy
The Group works actively to prevent insurance claims, for
example, through its extensive quality activities and by preventing
interruption risks in the operations. Getinge is to act as if the
Group were uninsured. That means that Getinge continuously
considers risk factors and manage them as part of the daily
operations. Actively monitoring incidents and correcting under-
lying causes means that claims related to product liability can
be prevented. The insurance program protects the consolidated
balance sheet and avoids fluctuations in the income statement.
Group-wide insurance program
Getinge has a Group-wide insurance program that
encompasses the global operations. The aim is to cover insur-
able risks with adequate limits based on current risk exposure
levels. Insurance policies have been entered into with insurance
companies with high credit ratings and a documented ability to
provide claims assistance. A joint insurance program creates
economies of scale and ensures a harmonized approach to limits
and deductibles. It also creates a platform for building a balanced
and cost-ecient program to prevent fluctuations in earnings.
Customer value
Stable and standardized insurance cover for the Group’s global
operations also adds customer value since it is required in many
tender and procurement processes and when commercial con-
tracts are signed.
Assurance framework, risks and risk management
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2021 ANNUAL REPORT
Corporate governance Control framework, risks and risk management
Ethics & Compliance
The above risk signaling system is supplemented by the Ethics
& Compliance function. Within the scope of its assignment,
the Audit and Risk Commiee monitors the work of the Ethics
& Compliance function. Read more about the Group’s work on
Ethics & Compliance and responsible leadership in the Ethics &
Compliance report that is available on the company’s website. In
2021, work has progressed on building up the Ethics & Compliance
function to ensure that it can independently work with business
ethics and compliance.
The Ethics & Compliance function is a global function (second
pillar) that is responsible for the global Ethics & Compliance
program, sets global standards and processes, and monitors the
use and implementation of these. The function also manages the
Group’s Speak-Up process (whistleblower function) and performs
risk assessments and internal investigations. The head of the
function reports to the EVP Legal, Compliance & Governance.
The regional Legal, Compliance & Governance teams support
and guide the business managers in their daily work and support
the implementation of processes, standards and tools provided
by the global function. Each region has appointed a designated
Ethics & Compliance coordinator who forms part of the global
Ethics & Compliance network. At each quarterly meeting with the
Board’s Audit and Risk Commiee, the EVP Legal, Compliance &
Governance presents the progress of the risk-based compliance
program and reports on any incidents and the status of ongoing
investigations. The Audit and Risk Commiee regularly monitors
any maers that may require additional focus, as instructed by the
Board. The internal investigation processes are monitored through
quarterly reports to the Ethics Commiee.
An innovative training and inspiration program in Responsible
Leadership known as #itstartswithme has been established in the
Group to ensure that all employees feel confident in making long-
term and responsible decisions and to ensure that employees can
report and discuss improprieties and challenges.
Corporate Internal Audit
Getinge has established an internal audit function called Corpo-
rate Internal Audit. The purpose of the Corporate Internal Audit
within Getinge is to provide independent evaluation of operational
governance in selected areas, with a focus on eectiveness and
risk management (third pillar). The annual internal audit plan
is based on the company’s thorough risk analysis and function-
specific and industry-related risk assessments. Internal audits are
conducted for individual units and company-wide processes and
within thematic areas. Each year, priority is assigned to a number
of units, processes or themes for auditing, in which a number
of improvement areas are identified and graded based on their
potential business impact. For all observations, an action plan is
prepared in collaboration with each business owner. The Corpo-
rate Internal Audit function then follows up, together with the
business owner, to ensure that each observation is closed within
the defined time frame.
EY (Ernst and Young Global Limited) has been Getinge’s partner
in internal auditing since the Corporate Internal Audit function
was established. The foundation of the internal audit work was
set in partnership with EY. In 2022, the Corporate Internal Audit
function will be internalized and a Head of Internal Audit has been
recruited who will report directly to the Audit and Risk Commiee
and the Commiee Chairman, but be part of the management
team for Legal, Compliance & Governance.
GETINGE’S PRIMARY RISKS, CONSEQUENCES AND MANAGEMENT
Description Potential consequences Management
New competitors
and new technology
Certain markets and product
segments have niche players
who oer solutions outside
customary market behavior.
These competitors could capture
market shares from more established
companies such as Getinge, resulting
in a negative eect on Getinge’s sales
and earnings.
Getinge’s long-term strategy includes active business
intelligence of the competitive landscape to react to this
type of competitors. The industry is also considered to have
high barriers to entry since medical devices are subject to
extensive regulatory requirements.
External shocks,
such as geopolitical
risks, natural
disasters, terrorism,
pandemics, etc.
These are oen quickly
escalating situations that
aect large parts of the
world, a country, a region or
a specific site.
The primary consequence of this type
of risk is that employees could be in-
jured. There is also the risk of business
interruptions that could have a nega-
tive impact on sales and earnings.
Active business intelligence can detect some of these risks
at an early stage and the Group will then have the chance
to adapt to the new situation. A process to further enhance
the Group’s work on continuity risks was started in 2021. As
part of this process, scenarios based on external shocks
will also be included in the risks that Getinge proactively
works on.
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2021 ANNUAL REPORT
Control framework, risks and risk management Corporate governance
Description Potential consequences Management
Quality risks from
a regulatory
perspective
Significant parts of
Getinge’s product range
are covered by legislation
stipulating extensive as-
sessments, quality control
and documentation.
It cannot be ruled out that Getinge’s
operations, financial position and
earnings may be negatively impacted
in the future by diculties in comply-
ing with current regulations and re-
quirements of authorities and control
bodies or changes to such regulations
and requirements.
To limit these risks to the greatest possible extent, Getinge
conducts extensive work focused on quality and regulatory
issues. The Group-wide Quality compliance, Regulatory
& Medical aairs function has a representative in the
Getinge Executive Team and also a representative on
the management teams of each business area, and the
function is represented in all R&D and production units.
In addition, Getinge’s sales force and service technicians
receive relevant quality and regulatory training every other
year to renew their certification. This is a requirement for
representing Getinge.
The majority of the Group’s production facilities are certified
according to the medical device quality standard ISO 13485
and/or the general quality standard ISO 9001. In total, the
Group allocates significant resources to quality and regula-
tory maers in order to best manage this risk exposure, and
quality is the overall priority in the Group’s strategy.
Product quality
from a customer
perspective
In certain cases, Getinge’s
products do not meet
customer expectations.
Customers experiencing shortcomings
in Getinge’s product quality results in
a higher risk of customers choosing
other suppliers. This could entail a risk
of lower sales and lower profitability
over time.
Getinge applies a far-reaching quality process that aims to
ensure a high and even level of quality to meet customers’
legitimately high requirements. This is an ongoing process
that results in continuous improvements. When quality fails,
it is important to rapidly bring the right equipment on site to
rectify the fault during the first service visit. Getinge closely
monitors the “first time fix” factor of its services operations
and works extensively to make improvements related to
such faults or shortcomings.
Laws and
regulations
mainly on business
ethics
Breaches of competition
law, anti-corruption, data
privacy (GDPR) or trade
restrictions.
Could lead to fines or penalties in one
or more markets and have a negative
impact on the Getinge brand.
Getinge has previously provided information about ongoing
investigations and agreements with the authorities re-
garding anti-competitive procedures in the sale of medical
devices in Brazil. It cannot be ruled out that any further
agreements with authorities may have a material impact on
the company’s financial earnings and position.
Getinge has a zero tolerance policy when it comes to
breaches of these regulations. The Group’s Code of Conduct
is very clear in this respect. The corporate function Ethics
& Compliance was expanded during recent years and the
head of the department has been a member of the Getinge
Executive Team since 2020 to further demonstrate how
highly the organization prioritizes these issues.
A comprehensive training program in business ethics is pro-
vided on an ongoing basis and the aim is for all employees to
take the course at least once a year.
Getinge’s business ethics regulations also apply to external
distributors who sell Getinge’s products in a large number
of countries in which the Group does not have its own
presence.
Digitization and
innovation
Getinge’s future growth
depends on the company’s
ability to develop new
and successful products,
particularly in the area
of digitization. Getinge’s
ability to innovate is a very
important factor in retaining
and establishing leading
positions for the Group’s
product segments.
Innovation eorts are costly and it
is not possible to guarantee that
developed products will be commer-
cially successful, which could result
in impairment. In the long term, the
Group’s position in the market could
be negatively aected if Getinge is
unsuccessful in this area.
As means of maximizing the return on investments in re-
search and development, the Group applies a structured se-
lection and planning process that includes careful analyses
of the market, technological progress, choice of production
method and selection of subcontractors. The actual devel-
opment work is also conducted in a structured manner and
each project undergoes a number of fixed control points.
The Group is particularly concerned with ensuring access to
the right skills, retaining key individuals, being an aractive
employer to recruit talent externally, and identifying and
developing talent within the organization.
GETINGE’S PRIMARY RISKS, CONSEQUENCES AND MANAGEMENT
(
CONT.
)
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2021 ANNUAL REPORT
Corporate governance Control framework, risks and risk management
Description Potential consequences Management
Risks related
to health care
reimbursement
systems
Political decisions can
change the conditions
for health care through
changed reimbursement
models for health care
providers.
Changes to the health care reimburse-
ment system can have a major impact on
individual markets by reducing or deferring
grants.
It is dicult to influence this risk since these decisions are
outside the Group’s control but the risk is limited by Getinge
being active in a large number of geographical markets.
Product liability
risks
Health care suppliers
run a risk, like other players
in the health care industry,
of being subject to product
liability and other legal
claims.
Such claims can involve large amounts and
significant legal expenses. Getinge carries
the customary indemnity and product
liability insurances, but there is a risk that
this insurance coverage may not fully cover
product liability and other claims.
The best way of managing these risks is the extensive
quality-related and regulatory activities performed by the
Group. Sources of potential future claims for damages are
monitored through active incident reporting. Corrective
and protective action (CAPA) is initiated when necessary to
investigate the underlying cause, aer which the product
design may be corrected to remedy the fault.
Risks related
to intellectual
property rights
Getinge’s leading positions
in many of the Group’s
product segments are
based on patent and trade-
mark rights. These rights
could lead to disputes with
competitors.
Getinge invests significant resources in
product development that results in patent
rights. There is a risk that the Group will
be involved in costly disputes concerning
such rights and thus a risk that invested
resources will not generate the expected
return if such a dispute is lost.
To secure returns on these investments, Getinge actively
upholds its rights and monitors competitors’ activities
closely. If required, Getinge will protect its intellectual
property rights through legal processes.
Financial risks
Getinge is exposed to a
number of financial risks
in its operations. Financial
risks principally pertain to
currency risks, interest-rate
risks, and credit and coun-
terparty risks.
Fluctuations in exchange rates and inter-
est rates and changes in counterparties’
credit profiles could adversely aect the
Group’s income statement and balance
sheet.
Risk management is regulated by the finance policy
adopted by the Board and a Treasury directive decided by
the Getinge Executive Team based on the finance policy.
The ultimate responsibility for managing the Group’s finan-
cial risks and developing methods and principles of financial
risk management lies with the Getinge Executive Team
and the treasury function. For more detailed information
concerning these risks, refer to Note 28.
Information and
data security
Leaks of confidential infor-
mation or hacking into the
Group’s IT system resulting
in restricted availability or
interruptions of business-
critical systems.
Leaks of personal data could lead to high
fines. Hacking into IT systems could lead to
business interruptions. A loss of sensitive
information may adversely aect confi-
dence in the company.
The Group’s IT structure is to be considered to be decentral-
ized, which reduces the consequence of any unauthorized
access. The Group has improved user authentication during
the year to prevent hacking. This work will continue in the
year ahead. The Group also closely monitors critical systems
to prevent hacking.
OTHER RISK AREAS OF MAJOR IMPORTANCE TO GETINGE
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2021 ANNUAL REPORT
Control framework, risks and risk management Corporate governance
Description Potential consequences Management
Deficiencies in
cyber security
Security deficiencies in the
Group’s digital oering, such
as connected machines at
customer sites and stricter
legal requirements for pro-
cessing personal data.
Restricted availability of equipment deliv-
ered by Getinge to its customers, which
could result in interruptions to the hospital
operations and it not being possible to
oer patients sucient care in critical
situations.
Getinge works diligently to ensure the integrity of its equip-
ment that is connected to the internet. In-depth access
testing and other measures are carried out before these
solutions are oered to the Group’s customers.
Business
interruptions
Unforeseen and sudden
events, such as natural di-
sasters, fires, etc. that result
in disruptions to production
or the supply chain.
Potential interruptions and higher costs
in the supply chain and production could
lead to more costly or delayed deliveries
or, in a worst case scenario, non-delivery to
Getinge’s customers. Such a situation risks
negative consequences for the Group’s
earnings.
In the first half of 2022, there is a continuing risk of tempo-
rary business interruptions linked to a further deterioration
in the global availability of electronic components as a
result of the ongoing pandemic.
The Group continuously works on claims prevention to
ensure a high level of availability and delivery reliability.
External experts inspect the Group’s production units on a
regular basis to identify and take action on potential inter-
ruption risks, following a Group-wide standard. The process
of further improving the Group’s business continuity will
continue in 2022.
Profitability
dependent on
certain products
and markets
In certain cases, a relatively
large share of the total
profitability of a product is
linked to sales in a certain
market.
The consequence of such a situation is
that profitability can be adversely aected
if sales volumes were to decline due to
a changed competitive situation in the
market.
Getinge works actively to monitor profitability per product
and market in order to ensure profitability over time. To
reduce the sensitivity of profitability, the Group actively
works on ensuring that it has the right cost level in relation
to the current price levels in the market. Getinge also works
actively to establish itself in new markets.
Dependence
on external
suppliers
External suppliers that
deliver critical components
to the Group are a highly
important part of Getinge’s
manufacturing process.
Production disruptions may
arise if these compnents are
not supplied on schedule.
One of the potential consequences of
this is that life saving equipment may not
be delivered to hospitals as required for
maintaining critical health care.
Getinge works actively to monitor critical deliveries. This
process is initiated when the partnership is established
and is then continuously monitored. The purchasing orga-
nization has tools for evaluating risk and for training in this
area. The Group also works on ensuring that it has adequate
levels of critical components in stock, either in its own
operations or with the relevant supplier. Interruptions of
critical deliveries are also included in the general activities
related to business continuity risks. Refer to “Business
interruptions” above.
58
2021 ANNUAL REPORT
Corporate governance Internal control over the financial reporting
At Getinge, internal control over the financial reporting is an
integral part of the corporate governance. It comprises processes
and methods to safeguard the Group’s assets and accuracy in the
financial reporting, and in this manner, protects the shareholders’
investment in the company.
Control environment
The basis of the internal control over the financial reporting
comprises the control environment, including the organization,
decision-making channels, authorities and the responsibilities that
are documented and communicated in steering documents. The
Audit and Risk Commiee’s responsibilities include monitoring the
eectiveness of the company’s internal control, financial reporting
and risk management. Each business area and the sales organi
-
zation are responsible for continuous transaction management
and accounting, while Getinge’s Shared Service Center in Krakow,
Poland, conducts this management on behalf of the business areas
and the sales organization to a certain extent. Each business area
and the sales organization has a financial manager, who is respon
-
sible for the financial control and for ensuring that the financial
statements are accurate, complete and submied in good time
prior to consolidated reporting.
Control activities
The most material risks identified relating to financial reporting are
handled by the company’s control activities. For example, there are
automated controls in IT-based systems that manage authority lev
-
els and rights to authorization, as well as key control elements, such
as duality in the day-to-day recording of transactions and closing
entries. Detailed financial analyses of results and follow-ups against
plan and forecasts supplement the operation-specific controls and
provide overall confirmation of the quality of the financial reporting.
The Group follows standardized templates and models to document
controls.
Information and communication
The Group has information and communication procedures to
promote completeness and accuracy in the financial reporting.
Steering documents and work descriptions are available on the
company’s intranet. Information regarding the eciency of the
internal controls in the Group is regularly reported to the relevant
financial manager for the sales organization and the business areas,
as well as to the internal control function, the finance function, the
Getinge Executive Team and the Audit and Risk Commiee.
Follow-up and monitoring
Each financial manager and the Getinge Executive Team perform
monthly analyses of the financial reporting at a detailed level. The
Audit and Risk Commiee follows up the financial reporting at its
meetings and the company’s auditors report on their observations
and provide recommendations. The Board receives financial
reports on a monthly basis and the company’s financial position
is discussed at every Board meeting. The eciency of the
internal
control activities for the financial reporting is annually followed up
by the internal control function in the Group and this comprises
an assessment of the formulation and operative function of key
control elements that have been identified and documented.
The results of the independent evaluation of key controls in the
internal assurance framework are reported to the Audit and Risk
Commiee every year.
Self-assessment and validation
The Getinge Group has worked for several years with a formalized
process for the follow-up and evaluation of the documentation of
key control elements. The internal assurance framework is regular-
ly reviewed based on the results of, for example, self-assessments
and auditing activities. This work took the form of self-assess-
ments and validation of the self-assessments. The validations are
performed by each financial manager or the person in the sales
organization or the business area to whom the manager has dele-
gated this task, supported by the central internal control function.
The purpose of self-assessment is to proactively identify any
weaknesses in the internal control environment, jointly develop
improvement measures, but also ensure the maintenance of the
achieved good internal control environment. Another purpose is to
enhance the eciency of the local control activities in companies
by identifying shared work methods and transferring knowledge
between the companies to raise the general quality of the control
environment.
In 2021, two-thirds of the active companies, jointly totaling just
over 90% of the sales in the Group, conducted a self-assessment.
In conjunction with the standard audits, the auditors conducted
an in-depth validation of the internal control environment. Both
the self-assessment and the auditors’ evaluation encompass the
following processes: corporate governance (such as assignment
of authority for financial IT systems and implementation of global
policies), financial reporting, production and inventories, tangible
and intangible assets, sourcing of and revenues from products and
services, salary and remuneration procedures and tax manage-
ment. The digitalization of the self-assessment process, which
commenced in 2020, continued in 2021 and more companies have
been introduced into the tool.
Outcome 2021
The follow-up of the internal control in 2021 indicated that docu-
mentation and control activities over the financial reporting were,
in all material respects, established at the validated companies.
Follow-on work
In 2022, the internal control function will continue its work to
improve the internal control environment through the further
development of the framework and work method, and by further
clarifying roles and responsibilities. The outcome from the year’s
validation and evaluation, and from the various company audits,
will be used as a basis for the continuous improvement work on
internal control via financial reporting.
Internal control over the financial reporting
59
2021 ANNUAL REPORT
Auditor’s statement on the Corporate Governance Report Corporate governance
Auditor’s report on the Corporate Governance Report
To the General Meeting of Shareholders in Getinge AB (publ),
corporate identity number 556408-5032
Engagement and responsibility
It is the Board of Directors who is responsible for the corporate
governance statement for the year 2021 on pages 34–58 and that it
has been prepared in accordance with the Annual Accounts Act.
The scope of the audit
Our examination has been conducted in accordance with FAR’s
auditing standard RevR 16 The auditor’s examination of the Corpo-
rate Governance Report. This means that our examination of the
Corporate Governance Report is dierent and substantially less in
scope than an audit conducted in accordance with International
Standards on Auditing and generally accepted auditing standards
in Sweden. We believe that the examination has provided us with
sucient basis for our opinions.
Opinions
A Corporate Governance Report has been prepared. Disclosures in
accordance with chapter 6 section 6 the second paragraph points
2–6 the Annual Accounts Act and chapter 7 section 31 the second
paragraph the same law are consistent with the annual accounts
and the consolidated accounts and are in accordance with the
Annual Accounts Act.
Gothenburg March 30, 2022
Öhrlings PricewaterhouseCoopers AB
Peter Nyllinge Karin Olsson
Authorized Public Accountant Authorized Public Accountant
Auditor in Charge
Sustainability
Report
60 About the report
61 Comments from the CEO
62 Stakeholders and material topics
65 Sustainability Targets & Results 2021
67 CSR Initiatives
68 Memberships, ESG Ratings and Awards
69 UN Sustainable Development Goals
70 Sustainability Governance
72 Getinge ESG GRI Index
73 EU Taxonomy
74 Auditor’s report on the statutory Sustainability Report
Contents
Getinge’s statutory Sustainability Report
is based on the sustainability framework’s
four focus areas Quality culture,
Passionate employees, Environmental &
social engagement and Business ethics
& responsible leadership. Getinge’s
statutory Sustainability Report for 2021
has been prepared in accordance with GRI
Standards: Core Option.
In order to provide stakeholders with
comprehensive and comparable informa-
tion, Getinge has decided to publish all GRI
disclosures in a separate report, “Getinge
Sustainability
– ESG Addendum for Annual
Report 2021“, which can be found at:
hps://www.getinge.com/int/about-us/
investors/reports-presentations/
The Sustainability Report covers
production facilities and subsidiaries,
but not associated companies.
Getinge’s reporting cycle is annual,
and the company’s last Annual Report
and sustainability update report were
published on March 19, 2021.
Getinge's Sustainability Report for 2021
has been prepared in accordance with GRI
standards: Core option, it has not been
examined by the company's auditor. In
accordance with Chapter 6, Section 11 of
the Swedish Annual Accounts Act, Getinge
has chosen to prepare a statutory Sustain-
ability Report as a separate report from
the Annual Report and the auditor's report
on the statutory Sustainability Report is
available on page 74.
The following topics are covered in the
statutory sustainability report:
• Anti-corruption: pages 18, 63–64 and 70
• Business model: pages 6–7 and 12–33
• Environment: pages 19, 63–66, 70-71
• Employees: pages 18, 63–64, 66 and 71
• EU Taxonomy: page 73
• Human rights: pages 18, 63–64 and 71
• Social: pages 19, 63–64, 66– 67 and 71
Information on risk related to areas in
sustainability are included in pages 70–71 in
Getinge’s overall description of risk mana-
gement on pages 53–57.
Contact statutory Sustainability Report:
Ralf Uwe Schmi
Vice President Sustainability & Leadership
E-Mail: ralf.schmi@getinge.com
About the report
2021 ANNUAL REPORT
61
Comments from the CEO Sustainability Report
Comments from the CEO
Our brand promise at Getinge is “Passion for life”. This clearly
marks our responsibility to ensure that our products, solu-
tions and overall impact contribute to a sustainable business
and world. A core part of this is to find innovative ways to help
more people using less resources in healthcare. This commit-
ment starts with our internal ways of working, but equally im-
portant is how we proactively find ways to help our customers
and other key stakeholders to contribute.
To support our ambitions we have established a Sustai-
nability framework consisting of four parts: Quality Culture,
Passionate Employees, Environmental & Social Engagement
and Business Ethics & Responsible Leadership. These areas
and topics have been prioritized in light of customer value,
risks, cost and overall business impact. You can find more
information about our various activities related to each area
in our 2021 Annual Report.
As early as 2020 we set our direction to become a CO
2
neu-
tral company by 2025 in our own operations and last year we
also commied to the Science Based Target initiative, scope
1–3, and to become a net-zero emissions company by 2035.
We are progressing according to plan, although much work
remains to be done. We have decreased our CO
2
-emissions
in production by 27% compared to the base year 2019. We are
shiing to renewable energy sources, finding smart and as
environmentally friendly ways as possible for shipping, trans-
forming our fleet into hybrid and electrical cars and ensuring
we only travel when absolutely needed. We are also following
our eco-design principles in product development to ensure
that our products and solutions supports our customers’
endeavors to reduce emissions without compromising on
quality. We play an important role in minimizing use of material,
recycle and reduce energy and water consumption.
On the following pages you can find more details about our
work and progress. Sustainability is, and will remain, a top
priority for us at Getinge.”
Maias Perjos,
President & CEO
2021 ANNUAL REPORT
62
Sustainability Report Stakeholders and material topics
Stakeholder dialogue
Getinge’s stakeholder dialogue is a continuous practice in its
day-to-day work. As part of the continued review of our sustain-
ability framework multiple internal and external business partners
were interviewed on their needs and priorities in sustainability in
regards to Getinge as a company and as a supplier in 2021.
Employees
Getinge’s passionate employees are a key factor for Getinge to
deliver on the company‘s business strategy, achieve the overall
targets and act as a responsible company.
Customers
Getinge values its close customer relationships and dialogues.
The company actively listens to customer feedback so that it can
deliver valuable products and services.
Partners
Cooperation and dialogues with other experts are necessary to
achieve success and to contribute to the society in the best way
Stakeholders and material topics
possible. The many collaborations with partners during COVID-19
are prime examples on this.
Existing and potential owners
Getinge has ongoing dialogues with investors, especially in con-
junction with financial reporting. The company provides actual
and fact-based sustainability data and progress reporting.
Governments and Regulators
Getinge is commied to comply with all applicable regulation in its
markets and the geographies where the company operates. The
regulatory environment is critical to the success of our business.
Auditors
Getinge has decided to have its Sustainability Framework and
reporting audited by an external assurance company, starting with
a pre-assurance of key topics and indicators on the sustainability
report from 2020 in 2021. Getinge is seeking limited assurance of
its sustainability reporting in 2022, and is aiming for a reasonable
assurance further on.
Stakeholders Prioritized topics Channels for dialogue
Employees
• Become a CO
2
Neutral Company by 2025
• Flexible Workplaces
• Learning organization & Education
• Innovate products & services, EcoDesign
• Social responsibility commitment.
• Meetings, interviews and workshops
• Education and trainings
• Employee Survey 2021
• GetNet (internal digital platform)
Customers
• Product quality, eciency and safety, innovation and longevity
• Product sustainability data (LifeCycleAssessments, material
declarations)
• EcoDesign: Ease of use & recycling of packaging materials,
reduction of waste
• Environmental impacts of products, End-of-life programs
• Meetings and interviews
• Analysis of tender specifications and requirements of purchasing
organizations
• Financial statements including Annual Report & Sustainability
Report
• Product-related information and customer trainings
• Getinge.com
Partners
• ESG Reporting
• Sustainable sourcing
• Digitalization of processes and data management
• Meetings and interviews with suppliers, financial stakeholders,
ESG rating agencies
• Financial statements including Annual Report & Sustainability
Progress Report
• Communication and training on Supplier Code of Conduct and
Business Partner Code of Conduct
• Getinge.com
Investors,
owners and
auditors
• Fact-based quarterly sustainability data
• Roadmap to carbon neutrality
• Evolving reporting standards and additional formats in ESG reporting
• Economic eciency, tangible and intangible assets
• Governance and compliance
• Long term profitability & financial performance
• Meetings, interviews and workshops
• Financial statements including Annual Report & Sustainability
Report, ESG Addendum
• Capital Markets Day
• Quarterly telcos
Stakeholder dialogue
2021 ANNUAL REPORT
63
Stakeholders and material topics Sustainability Report
Material topics
Getinge conducted a full review of its materiality analysis on sus-
tainability topics in 2020 and continued its stakeholder dialogues
with all groups in 2021, which provided the foundation for a review
of the materiality analysis in 2021. The review was carried out to
ensure that the sustainability framework and targets under the
program are addressing what is material to its internal and exter-
nal stakeholders. Getinge’s engagement with stakeholders from all
groups showed minor changes in topics and priorities during 2021.
Stakeholders Prioritized topics Channels for dialogue
Governments
and Regulators
• Contribution to national economic, development and public
health priorities
• Climate change and wider sustainability agenda, including carbon
reduction, human rights, environmental impacts
• Support in local communities and corporate behaviour
• Memberships in UN Global Compact and local Swedish Associations
• Ongoing dialogues with regulators on certification of products
• Financial and Non-financial reporting including Annual Report &
Sustainability Progress Report
• Getinge.com
Stakeholder dialogue cont.
Material Topics: Review 2021
Corporate Social Responsibility
Compliance & Business Ethics
Product Quality & sustainability data
Support of UN SDGs
EcoDesign
Commitment and Roadmap
to carbon neutrality
Sustainable HC oerings
Health & Safety during pandemic
Employee Benefits
Diversity & Gender equality
ESG Reporting
Waste management & Recycling
Smart Logistics and packaging
materials
Responsible Sourcing
Leadership & People Management
Data privacy & security
CO
2
Emissions from Fleet & Travel
Supplier ESG Management
Digitalization & automation
Importance to stakeholders
Impact on Getinge’s economic, environmental and social performance
high
medium
medium highlow
2020 2021
2021 ANNUAL REPORT
64
Sustainability Report Stakeholders and material topics
Quality Culture
Business Ethics &
Responsible Leadership Passionate Employees
Environmental &
Social Engagement
• Continuously improve products,
services and processes
• Advancing our oerings through
customer insights and innovation
• Making sure Getinge does the right
things, in the right way, every day in
each part of the company
• Ensuring business is conducted in
an ethical and responsible way, in
all internal and external contexts
• Ensuring human rights and guide-
lines of anti-corruption
• Having a competent, diverse and
inclusive organization
• Developing Getinge's leadership
to foster an open and transparent
culture
• Continuously enable and inspire
responsible leadership
• Build a learning organization where
employees develop and grow
• Create strong employee engage-
ment
• Teamwork and collaboration to
find and implement ecient and
eective ways of working, for the
benefit of customers and Getinge
employees
• Contributing to a sustainable
health care market and society by
working in close partnership with
our customers
• Integrating EcoDesign in product
development and measuring the
environmental impact in all parts
of the value chain, with focus on
becoming a CO
2
neutral company
by 2025 (GHG Scope 1&2) and
2035 (Scope 3)
• Prioritizing and safeguarding the
health and safety of its employees
Focus Areas & Activities
• Clear roles & responsibilities
• Well defined processes
• Continuous improvements
Focus Areas & Activities
• Ethics & Compliance: Compliance
with laws and regulations, ethical
standards, human rights, anti-cor-
ruption, our Code of Conduct and
global polices and directives
• Company Core Values & Leader-
ship Competencies: Getinge’s cul-
tural values are the foundation of
all work and activities that enables
and develop the leadership
• Diversity & Equality: Getinge’s
commitment to its role in global
society, ensuring a more diverse
workforce based on gender
equality
Focus Areas & Activities
• Flexible Workplaces: Transforma-
tion of management processes
with a focus on eciency and
digitalization
• Learning Organization: Enabling
all employees to understand the
company targets and act responsi-
bly based on company values
• Employee engagement: Improve-
ments based on employee surveys
and employee NetPromoterScore
Focus Areas& Activities
• EcoDesign & Environmental
Management: Getinge’s com-
mitment to transform its use of
environmental resources and
create sustainable products and
health care oerings
• Health & Safety: Global Health
& Safety Management System to
keep the company's employees
safe and healthy, and reduce the
number of work related accidents
and incidents
• Getinge in the Society: Engage-
ment in local communities,
donation programs and charity
engagements
Boundaries
This topic includes all parts of the
organization, Group companies and
all employees at Getinge
Boundaries
This topic includes all parts of the
organization, Group companies and
all employees at Getinge
Boundaries
This topic includes all parts of the
organization, Group companies and
all employees at Getinge
Boundaries
This topic includes all parts of the
organization, Group companies and
all employees at Getinge
Impact Analysis
A strong quality focus ensures
business success, customer
satisfaction and mitigation of
business risks
Our quality governance structure
ensures transparency in decision
making, monitoring progress
toward targets, and guidance
for all employees
Impact Analysis
Responsible leadership at Getinge
means involving all employees to set
the standard and act as role models
for ethical behavior and profession-
al integrity. Activities in this area
provide the conditions and require-
ments for Getinge’s employees to
ensure business is conducted in an
ethical and responsible manner, in all
internal and external contexts. This
sets the foundation to mitigate risks
and avoid negative eects of legal or
regulatory non-compliance in human
rights and anti corruption
Impact Analysis
Passionate employees are the key
factor to bring Getinge's business
strategy to life, achieve its overall
targets and act responsibly as a
company
Getinge's progress in sustainability
is based on transformation of its
processes and behavior; as change
is based on human decision making,
passionate employees from the basis
of Getinge's success
Impact Analysis
For Getinge, acting sustainable
means that the company conducts
business that is ethically, socially
and environmentally sound across
the entire value chain
Reducing the corporate emission
footprint is not only a positive
contribution to limit climate change
but also helps to raise energy e-
ciency in production and operation,
decrease cost of energy use, and
avoid potential negative tax eects
of emissions
Management approach
The general management approach of Getinge's Sustainability program can be found in the section Sustainability Governance of this report on page 70. Further infor-
mation on the management approach for specific topics and indicators are included in "Getinge Sustainability – ESG Addendum for Annual Report 2021" for each GRI
disclosure. Information on the management of related ESG risks can be found on pages 70–71 and in the risk section on pages 53–57 of this report.
The updated material topics, outlined in table below, are divided
into the four focus areas of the Getinge sustainability framework;
Quality Culture, Passionate Employees, Environmental & Social
Engagement and Business Ethics & Responsible Leadership.
These areas and topics have been prioritized by the Getinge Man-
agement Team in light of customer value, risks, cost and overall
business impact. Getinge recognizes that almost all parts of the
organization are involved in improving our sustainability business
approach, covering a wider range of topics. Due to this, Getinge
has also decided to disclose a wider range of indicators in its ESG
GRI Index, in order to provide a transparent view on progress in all
areas important to the internal and external stakeholders. Getinge
will conduct a full review of its material topics in 2022.
2021 ANNUAL REPORT
65
Sustainability Targets & Results 2021 Sustainability Report
Sustainability Targets & Results 2021
Getinge has developed a global framework for its sustainability
eorts, which will be integrated in the business going forward and
monitored on an ongoing basis. In conjunction with this, Getinge
also set the target to become CO neutral by 2025 (GHG scope 1&2
in its own operations) and decided to have the sustainability report
for 2020 reviewed by the company's auditor, based on so called
pre-assurance, during 2021. A decision has also been made to
comply with Science Based Targets initiative. An additional gover-
nance structure, the Sustainability Board, was established during
the year overseeing and guiding initiatives under the sustainability
framework.
Among its wide range of topics addressed in all corporate
functions and sites Getinge's core environmental targets and
indicators developed positively in 2021.
Environmental
Targets 2019–2025 Target & Indicators Results 2021
Become a carbon
neutral company
CO
2
neutral in its own operations by 2025
Emissions from production (Scope 1&2)
Switch to renewable energy resources in production (in
percent of total energy consumption)
• 40% of energy consumption in production from renewable resources
• Roadmaps to carbon neutrality in place per production site
Projection: Transition to Renewable Energy Resources/ Targets
0
5,000
10,000
15,000
20,000
25,000
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2025 fc2024 fc2023 fc2022 fc202120202019
22% 24% 40% 65% 75% 85% 100%
Percentige of Renewable
Energy Sources
CO
2
tons
-5,000 tons
-5,000 tons
-2,500 tons
-2,200 tons
Energy consumption in production from Renewable Sources CO
2
e Emissions (Scope 1&2) from production in tons
Energy consumption in production from Non- Renewable Sources
Reduce CO
2
emissions from
production
-5% by 2025
ton CO
2
/ MSEK internal revenue
with 2019 as the base year.
• Reduction of 27% (compared to base year 2019)
Reduce energy
consumption
from production
-10% by 2025
MWh / MSEK internal revenue
with 2019 as the base year
• Reduction of 8% (compared to base year 2019)
Transformation
of corporate
vehicle fleet
50% by 2025
50% of vehicles with alternative low emission power units
by 2025
• 20% of Getinge’s vehicle fleet is equipped with hybrid or fully electric engines
2021 ANNUAL REPORT
66
Sustainability Report Sustainability Targets & Results 2021
Our agenda for Corporate Social Responsibility, including social and non-financial targets
remain unchanged, with the following results in 2021.
Non-Financial Targets Target Indicator Results 2021
Customer Satisfaction > 25% net promoter
score (NPS)
• Results from customer satisfaction
surveys
Global: NPS 39 (2018: 27)
China: NPS 79 (2018: 44)
UKI: NPS 50 (2018: n.a.)
Workplace Safety 0 workplace
related accidents
• Total work related accident rate 2021: 1,32
(2020: 1,35)
Employer engagement Employee Engagement
Index >70
• Results from annual employee
survey
67%
Diversity & Equal
Opportunities
Equal opportunities
to all employees
• Gender balance Gender balance in the group:
Managers 2021:
69% male/ 31% Female
Employees 2021:
63% male/ 37% Female
Environmental
Targets 2019–2025 Target & Indicators Results 2021
Reduce
emissions from
internal travel
50% by 2025
• Reduction of 50% internal travel with 2019
as the base year
• Reduction of 82% of emissions from internal travel
(compared to base year 2019)
CO
2
Emissions from travel
0
500
1,000
1,500
2,000
2,500
Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1
8,238 tons
1,896 tons
1,502 tons
CO
2
Emissions in tons
2019 2020 2021
-82%
2021 ANNUAL REPORT
67
CSR Initiatives Sustainability Report
Corporate Social Responsibility - Corporate Partnerships
As part of Getinge’s Sustainability Framework, social responsibility
commitment is centered on meeting health care challenges such
as an increasing population and longer life expectancies that
increase the pressure on health care systems. Getinge also wants
CSR Initiatives
Pratham
One of the largest international non-governmental organiza-
tions and innovative learning organization created to improve
the quality of education to underprivileged children in India.
Reason for partnership: Getinge actively support Pratham to
employ education in the fight against poverty
Partnership since: 2018
WaterAid
An international not-for-profit organization working to
make clean water, decent toilets and good hygiene normal
for everyone, everywhere within a generation.
Reason for partnership: Contribute to improved access
of clean water, sanitation and hygiene in health care in the
world’s poorest communities.
Partnership since: 2020
The Foundation for Queen Silvia Children’s Hospital
The foundation supports children and young people every day
who are being treated for both physical and mental illnesses.
Reason for partnership: Support the important work to bring
joy into the everyday lives of children and young people who
are dealing with various illnesses.
Partnership since: 2020
Universeum
Science experience center, using playful methods to learn kids
and adults about science, nature and sustainable development.
Reason for partnership: Support Universeum in its mission to
strengthen skills supply and innovation, and to contribute to
sustainable societal development with a particular focus on
health.
Partnership since: 2020
to make a positive impact in wider society by collaborating with
non-profit organizations.
Getinge supports social initiatives locally and globally to show
our responsibility for global society.
Photo: WaterAid/Basile Ouedraogo
Photo: Droning Silvias barnsjukhus
Photo: Prantham Sweden
Photo: Universeum
2021 ANNUAL REPORT
68
Sustainability Report Memberships, ESG Ratings and Awards
Memberships, ESG Ratings and Awards
Member of United Nations Global Compact
As a member of the United Nations Global Compact, an orga-
nization most respected and influential in the domain of global
environmental and social goals globally, Getinge annually pro-
vides progress reports on its sustainability activities. Getinge's
Communication on Progress (COP) has been reported according
to the Global Compact (GC) Advanced level since 2018.
Through the GC Advanced level, the UN Global Compact Oce
recognizes companies that strive to be top reporters and declare
that they have adopted and report on a broad range of best prac-
tices in sustainability governance and management.
Global Compact Advanced COPs are publicly recognized on
the Global Compact website with detailed results of the COP self-
assessment available on Getinge's COP web page. See hps://
www.unglobalcompact.org/what-is-gc/participants/54811-Get-
inge#cop for more details.
Memberships & Associations
Getinge representatives hold positions as members of the Board
of Directors at Swecare, a Swedish semi-governmental non-profit
organization within health care, and Swedish Medtech, the associ-
ation for medi¬cal technology in Sweden.
Complying with Industry Standards:
Global Reporting Initiative (GRI)
The GRI Sustainability Reporting Standards are the first and most
widely adopted global standards for sustainability reporting. The
practice of disclosing sustainability information is set to inspire
accountability, helps identify and manage risks, and enables
organizations to seize new opportunities. Reporting with the GRI
Standards supports companies, public and private, large and
small, protect the environment and improve society, while at the
same time thriving economically by improving governance and
stakeholder relations, enhancing reputations and building trust.
To meet market and investors demand to report our company
performance in sustainability in a standardized way, Getinge bas-
es its reporting on the Standards of the Global Reporting Initiative
(GRI), starting with the Annual Report 2019. This also enables
Getinge to comply with the EU Directive 2014/95/EU on Corporate
Social Responsibility (Non-financial and Diversity Information).
Commiment to the Science Based Target Initiative
Getinge signed its commitment to develop its environmental
targets in line with the SBTi initiative in December 2020. Getinge
has also signed the ambition leer to contribute to limit global
warming below 1.5 °C in December 2020. In 2021, an internal work-
ing group was established to define targets and roadmaps in each
category of GHG Scope 3 emissions which will be provided to SBTi
for approval in 2022.
External ESG Ratings
Getinge is in continuous dialogue with financial stakeholders and
rating agencies, in order to provide transparent communication of
ESG topics and indicators.
Getinge is ranked on ESG performance by the reputable ranking
institute Sustainalytics. In 2021 Getinge conducted a review of
its data which was presented to Sustainalytics. This resulted in
an improvement in Getinge’s ESG rating to Medium Risk (25) for
2021, compared to High Risk (34) in 2020. Getinge's score in ESG
management momentum improved to Strong (50), an increase by
17.7 points compared to 2020.
Getinge continues to evaluate its sustainability performance
through EcoVadis, a leading system for evaluating suppliers’
environmental aspects, working conditions, corporate social
responsibility and subcontractors. The EcoVadis rating is an im-
portant achievement, illustrating Getinge’s commitment regarding
sustainability and the continued improvement in this area.
Awards 2021
For the second time, as World Finance Magazine awards busi-
nesses across the world that are taking action to tackle climate
change, Getinge was named winner in the category Most Sustain-
able Company in the Life Science Industry in 2021.
See hps://www.getinge.com/int/about-us/press/press-releas-
es/2021/4015282-Getinge-awarded-most-sustainable-company-in-
the-Life/ for more details.
2021 ANNUAL REPORT
69
UN Sustainable Development Goals Sustainability Report
The 17 Sustainable Development Goals (SDGs) launched by the
UN in September 2015 aim to achieve the changes necessary to
realize long-term sustainable development by 2030. The com-
mitment of companies and the actions they take are critical for
achieving these SDGs.
Getinge supports all of the UN’s 17 Sustainable Development
Goals on human rights, labor, environment and anti-corruption. A
number of goals that best correspond to the company’s impact on
its business environment have been identified. These goals are:
Goal 3 – Ensure healthy lives and promote
well-being for all at all ages
Operating in the medical device industry, Getinge as a company
contributes its therapeutic innovations to considerably improve
health and well-being as an integrated part of its business strat-
egy. This includes all internal and external touch-points - own
employees, suppliers, distributors and customers.
Goal 4 – Ensure inclusive and quality
education for all and promote lifelong
learning opportunities for all
Getinge continuously contributes to partners within health care
organizations, universities and medical schools to educate and
train health care professionals, as well as students starting their
medical training. In addition, Getinge supports the Pratham
educational program in India, to improve quality of education to
children in the fight against poverty. Also, Getinge is a partner of
Universeum, the largest science center in the Nordics. With this
partnership, Getinge supports Universeum in their mission to
strengthen science skills and innovation, and to contribute to sus-
tainable societal development. Receiving high-quality education is
a basis for a more prosperous life.
Goal 5 – Gender equality
Diversity, equal opportunities, gender and inclusion are not only
part of Getinge’s expanded Sustainability Framework but are also
key components of the company strategy. Getinge is strongly
commied to improve diversity, securing equal opportunities and
to close gender gaps across the entire company.
Goal 6 – Ensure access to water
and sanitation for all
Through its Ecodesign principles, Getinge is commied to a sus-
tainable market oering, characterized by products that enable a
reduced water usage throughout the entire lifecycle.
Goal 8 – Promote inclusive and sustainable
economic growth, employment and decent
work for all
As a global company, Getinge works to promote long-term sus-
tainable economic growth, a higher productivity level and techni-
cal innovation. Getinge strives to ensure protection of employee
rights, assurance of a safe and secure work environment, and
equality and equal conditions in working life.
Goal 12 – Ensure sustainable consumption
and production paerns
Getinge addresses defined goals and indicators related to CO
emissions, energy eciency, EcoDesign, waste and recycling.
Getinge works to achieve more sustainable consumption and
production that are anchored in environmental sustainable goals
and corresponds with international norms, standards and certifi-
cations such as ISO 14001.
Goal 13 – Take urgent action to combat
climate change and its impacts
Getinge is commied to doing its utmost to combat climate
change and is actively working on minimizing its environmen-
tal footprint. The company is engaged in achieving the Paris
agreement goals of limiting global warming to 1.5 °C above pre-
industrial levels, and has commied to the Science Based Target
initiative. Getinge is aiming for carbon neutrality in Scope 1 and 2
by 2025 in its own operations and in addition actively addressing
Scope 3 throughout the supply chain.
Goal 17 – Partnership for the goals
Strong global partnerships and collaborations is key to realizing
the Sustainable Development Goals. Getinge collaborates with its
customers and partners as a part of its daily operations to develop
products and solutions that contributes to a more sustainable
health care. In addition, the company works together with aca-
demia, industry organizations, NGO’s and governments to identify
and develop scalable solutions to health care related challenges.
UN Sustainable Development Goals
2021 ANNUAL REPORT
70
Sustainability Report Sustainability Governance
Sustainability Governance
Organization
The Executive Vice President Human Resources & Sustainability is
representing the sustainability function in the Getinge’s Executive
Team, which holds the overall responsibility for seing related goals
and strategies, and monitoring and measuring progress on
sustainability. In addition, Getinge has established a Sustainability
Board with representatives from the company’s Executive Team,
Business Areas, Business Ethics & Compliance, QRC, Finance and
Communications responsible for monitoring current ESG practices,
progress and risks. Each of the company’s Group functions and
production units are responsible for compliance with the Code of
Conduct and for the implementation of the sustainability targets
in their line organization. They are also responsible for evaluating
of sustainability related risks in their operations, such as envi-
ronment, occupational health & safety, anti-bribery & corruption,
human rights, labor & diversity and supplier responsibility.
Governance and ownership
Flow of decisions in sustainability
Sustainability
Function
Sustainability
Board
Business
Area Presidents
VP
Manufacturing
MD Local
Sites
Local HS & ENV
Managers
Regional
Presidents
Appointed
Leaders
Chief Commercial
Officer
EVPs Corp
functions
Getinge Executive
Team
Board
Proposed architecture
and governance structure
Decisions of targets
and measures
Execution of targets and measures
Feedback and opinion
Reporting
Mandate & coordination
of working groups
ESG Risk Management
Getinge’s Sustainability Framework includes ongoing assessement of
emerging sustainability issues to help the Getinge Executive Team to
anticipate risks and create value from emerging opportunities.
The Sustainability Board oversees the ESG risk assessments in
the focus areas of the global sustainability framework. With this,
Getinge integrates potential ESG risks into the organization’s risk
management (ERM) and reports on the results to senior
management, the Board of Directors and shareholders. Further
information on how Getinge manages business risk can be found
in the risk section of this report on pages 18–19 and 53–57.
Risks from Anti-Corruption
The Global Anti-bribery & Corruption (ABC) program serves as a
method and tool for ensuring that Getinge has adequate
procedures in place, aimed at preventing Getinge from taking part
in any corrupt business practices, and that the company adhere to
applicable laws and regulations as well as relevant ethical
standards including the Code of Conduct and global policies and
directives. In 2021, Getinge conducted a combined Anti-Bribery
and Corruption and Anti-trust Risk assessments in China, Türkiye,
Mexico, BeNeLux and France. The Ethics & Compliance function
also conducted a US specific risk assessment on Interactions with
experts within healthcare (HCP’s) and initiated a risk assessment
according to US regulations (HIPAA). The following key risks were
identified: Interactions with Healthcare Professionals, Sales
practices through third parties, Integration of Ethics & Compliance
in the daily business activities and risks of adherence to local
laws requirements related to prevention of corruption. In 2021 the
number of confirmed incidents of corruption and actions taken
is zero. For more information see disclosure GRI 205 in ”Getinge
Sustainability – ESG Addendum for Annual Report 2021”.
Risks in Human Rights
The company’s business operations are guided by the principles of
diversity and inclusion, freedom of association and ensuring a safe
and secure workplace. The dedication to human rights, regardless
of where in the world Getinge operates, is rooted in the Code of
Conduct and the Human Rights Policy. Risks have primarily been
identified as those linked to child labor, forced labor or compulsory
labor, but also the risk of discrimination, prevention of association
and freedom of negotiation and work environment-related problems.
These risks are however, not considered significant to Getinge’s
direct operations. All forms of violations of human rights are taken
very seriously and if any severe adverse Human Rights impacts are
discovered, Getinge will act appropriately without delay.
In 2021, no incidents of violations of human rights have been
identified. For more information see disclosures GRI 412, 408,
409, 411 and 414 in in ”Getinge Sustainability – ESG Addendum for
Annual Report 2021”.
2021 ANNUAL REPORT
71
Sustainability Governance Sustainability Report
Additional steering documents are in place internally from
specific functions and geographies where applicable. These are
also documented in ”Getinge Sustainability – ESG Addendum for
Annual Report 2021” for each topic/indicator in the Management
Approach sections.
ID Title
DIR-0117 Community Donations Directive
DIR-0129 Global Sanction Screening Directive
DIR-0141 Global Tender Directive
DIR-0142 Interactions with Competitors
DIR-0145 - Diversity Directive
DIR-0146 Labour Rights Directive
DIR-0147 Getinge International Assignment
DIR-0148 Global Travel & Expense Directive
DIR-0149 Global Reward Guidelines and Governance Directive
DIR-01501 Cybersecurity lifecycle
DIR-0151 Global Company Vehicle Directive
DIR-0161 Global Gi and Hospitality Directive
DIR-0201 Competence Awareness &Training
DIR-0220 Occupational Health and Safety Directive
DIR-0407 Product Risk Management
DIR-0421 Environmental Monitoring for Terminally
Sterilized HC Products
DIR-0801 Customer Issue Management
DIR-0904 Non-Conformity Handling
DIR-1301 Code of Conduct Investigations
DIR-1305 Speak-Up and Non Retaliation - Global
GG-SOP-0150 Environmental Survey & Planning
GG-SOP-0152 Environmental Communication
GG-SOP-0160 Emergency Management
GG-SOP-0450 EcoDesign
GG-SOP-0451 Environmental Legal Fulfillment
GG-SOP-0452 Environmental Risk Management
GG-SOP-0950 Environmental Monitoring & Improvement
SOP-0505 Supplier Performance Monitoring and Re-Evaluation
Audit & external assurance of non-financial reporting
Getinge started the process toward assurance of its sustainability
framework with preparatory pre-assurance work on the report for
Governance Documents in Sustainability
The Getinge global sustainability framework is accompanied
throughout the entire organization by its global policies, Standard
Operating Procedures (SOPs) and internal directives.
See hps://www.getinge.com/int/about-us/business-ethics/
code-of-conduct/policy-summaries/
ID Title
SOP-0508 Supplier corrective action requests (SCAR) Management
SOP-0902 Managing Corrective and Preventive Action (CAPA)
process
SOP-1001 Computerized System Validation Master Plan
SOP-1003 Risk Analysis for Computerized Systems
SOP-01503 Qualification of Soware and IT Infrastructure platforms
SOP-01524 Onboarding and Qualification
SOP-0411 Country Specific Labeling
SOP-0419 Product Risk Assessment & Product Risk Control
SOP-0502 Supplier Audits
SOP-0607 Hazardous Material Management - Logistics
SOP-0611 Scrap Handling - Logistics
SOP-0612 Shipping Preparation Packing and Delivery - Logistics
SOP-0802 Customer Product Complaint Handling
SOP-0803 Post Market Surveillance
SOP-1002 Computerized System Validation
SOP-1103 Health Hazard Evaluation
SOP-1108 QRC Key Performance Indicators
SOP Security Incident Management
POL-0102 Getinge Quality Policy
POL-0103 Getinge Environmental Policy
POL-0106 People Policy
POL-0107 Global Anti-Bribery Corruption Policy
POL-0109 Supplier Code of Conduct
POL-0111 Global Trade Compliance Policy
POL-0114 Sustainability Policy
POL-0118 Human Rights Policy
POL-0122 Global Antitrust & Fair Competition Policy
2020 in 2021. Getinge continues the auditing process to gain a lim-
ited assurance during 2022 and a reasonable assurance further on.
Risks in environmental aspects
Environmental risks include all impact of climate change to
Getinge's business. Getinge closely monitors the evolving leg-
islation in dierent geographies of operation in regards to the
financial impact of climate change (such as emission taxation
or resource pricing). Other risks in this area include responsible
use of resources and waste handling in all locations of operation.
Getinge has established ISO 14001 certifications in all production
sites to comply with all local regulation in this area.
Risks in employee aspects
Passionate employees are the key factor to bring Getinge's
business strategy to life, achieve the overall targets and act
responsibly as a company. Getinge's progress in sustainability is
based on transformation of our processes and behavior; as change
is based on human decision making, passionate employees from
the basis of success.
Responsible leadership at Getinge means involving all employees
to set the standard and act as role models for ethical behavior and
professional integrity. Risks in this area include the conditions
and requirements for Getinge’s employees to ensure business is
conducted in an ethical and responsible manner, in all internal and
external contexts. This sets the foundation to mitigate risks and
avoid negative eects of legal or regulatory non-compliance in
human rights and anti corruption.
Risks in social aspects
Getinge acknowledges its role in society and in the communities
of operation. Getinge's agenda for Corporate Social Responsibility
and social engagement is closely tied to the management of
business ethics & compliance for all our employees and
engagements in order to mitigate potential risks in this area.
In 2021, no incidents of non-compliance concerning the health
and safety impacts of products and services and no incidents of
non-compliance concerning product and service information and
labeling have been identified.
2021 ANNUAL REPORT
72
Sustainability Report ESG GRI Index
Standard GRI Standard
Foundation
GRI 101 Foundation (2016) 101-01 to 101-10
General Disclosures
GRI 102 General Disclosures (2016) 102-1 to 102-56
Management Approach
GRI 103 Management Approach (2016) 103-1 to 103-3
Economic
GRI 201 Economic performance (2016) 201-1 to 201-4
GRI 202 Market presences (2016) 202-1 to 202-2
GRI 203 Indirect economic impacts (2016) 203-1 to 203-2
GRI 204 Procurement practices (2016) 204-1
GRI 205 Anti-corruption (2016) 205-1 to 205-3
GRI 206 Anti-competitive behavior (2016) 206-1
Environmental
GRI 301: Materials (2016) 301-1 to 301-3
GRI 302 Energy (2016) 302-1 to 302-5
GRI 303 Water and effluents (2018) 303-1 to 303-5
GRI 305 Emissions (2016) 305-1 to 305-7
GRI 306 Waste (2020) 306-1 to 306-5
GRI 307 Environmental compliance (2016) 307-1
GRI 308 Suppliers environmental assessment
(2016)
308-1 to 308-2
Standard GRI Standard
Social
GRI 401 Employment (2016) 401-1 to 401-3
GRI 402 Labor/management relations (2016) 402-1
GRI 403 Occupational health and safety
(2018)
403-1 to 403-10
GRI 404 Training and education (2016) 404-1 to 404-3
GRI 405 Diversity and equal opportunity
(2016)
405-1 to 405-2
GRI 406 Non-discrimination (2016) 406-1
GRI 407 Freedom of association and collecti-
ve bargaining (2016)
407-1
GRI 408 Child labor (2016) 408-1
GRI 409 Forced or compulsory labor (2016) 409-1
GRI 411 Rights of indigenous people (2016) 411-1
GRI 412 Human rights assessment (2016) 412-1 to 412.3
GRI 414 Supplier social assessment (2016) 414-1 to 414-2
GRI 416 Customer health and safety (2016) 416-1 to 416-2
GRI 417 Marketing and labelling (2016) 417-1 to 417-3
GRI 418 Customer privacy (2016) 418-1
GRI 419 Socioeconomic compliance (2016) 419-1
Reporting transparently on environmental, social and gover-
nance (ESG) issues plays a vital role in delivering on the strategy.
Getinge's ESG reporting aims to provide comprehensive and
comparable disclosures for a broad range of stakeholders. Getinge
monitors evolving reporting frameworks in non-financial report-
ing and continue to learn from best practices. In order to provide
comprehensive and detailed information compliant with the GRI
standards, Getinge has decided TO publish data in ”Getinge Sus-
tainability – ESG Addendum for Annual Report 2021” according to
GRI standards. This document includes the following disclosures:
ESG GRI Index
ESG Addendum for Annual Report 2021
Getinge Sustainability
”Getinge Sustainability – ESG Addendum
for Annual Report 2021” is available at:
www.getinge.com/int/about-us/inves-
tors/reports-presentations/
2021 ANNUAL REPORT
73
EU Taxonomy Sustainability Report
EU taxonomy
The taxonomy focuses on the sectors that typically have the great-
est impact on the environment and for 2021 there are reporting
requirements for only the first two environmental objectives:
Climate change mitigation and climate change adaptation.
Getinge operates in a sector that is not eligible under the first two
environmental objectives since manufacturing of medical devices
has a significantly lower climate impact than the sectors and activ-
ities that are primarily aected by these environmental objectives.
To identify taxonomy-eligible activities, Getinge appointed
a working group during the year, which, supported by external
expertise, analyzed the company’s economic activities and invest-
ments and assessed them against the Taxonomy Regulation and
its delegated acts. Based on this analysis, it was concluded that
Proportion of the Group’s turnover, CapEx and OpEx eligible under the Taxonomy regulation, 2021
Total, SEK M
Proportion of activities that are
taxonomy-eligible (%)
Proportion of activities that are not
taxonomy-eligible (%)
Turnover 27,049
1)
0
4)
100
CapEx 1,326
2)
4
5), 6)
96
OpEx 556
3)
0
7)
100
1) Refers to the Group’s net sales for the 2021 fiscal year, which corresponds to the revenue arising in the normal operations recognized in accordance with IFRS 15.
2) Refer to capital expenditure (CapEx) related to investments in tangible assets, intangible assets and right-of-use assets under IFRS 16 (refer to Note 12 and Note 20 of the
Annual Report). Assets arising through business acquisitions are included, except for goodwill which is not an identifiable intangible asset according to the definition in IAS 38.
3) Refers to operating expenditure (OpEx) aributable to costs for research and development, renovating buildings, short-term leases, maintenance and repairs as well as other
direct expenses required for effective daily operations of tangible assets.
4) Getinge did not identify any taxonomy-eligible revenue in its operations related to the environmental objectives that came into force and apply for the 2021 fiscal year.
5) Getinge’s primary operations in the form of manufacturing of medical devices are taxonomy-non-eligible related to the environmental objectives that came into force and
apply for the 2021 fiscal year. However, Getinge has the target of becoming climate neutral by 2025 and therefore has invested in energy efficiency equipment related to
buildings, charging stations for electric cars and right-of-use assets for electric cars, which are taxonomy-eligible.
6) Investments in energy-saving equipment have been judged to be taxonomy-eligible according to activities 7.3 and 7.5 in Annex 1 of the Taxonomy Ordinance and investments
in charging stations and rights of use regarding electric cars are taxonomy-eligible according to activity 7.3 and activity 3.3 in Annex 1. All activities that are judged to be
taxonomy-eligible has been allocated the first climate target - limitation of climate change - because the taxonomy does not allow a specific activity to be allocated to more
than one environmental target and thereby reported more than once.
7) Identified OpEx that are taxonomy-eligible in 2021 amount to SEK 0 M.
Getinge’s primary activities in the form of manufacturing medical
devices are not eligible as economic activities as defined in the
taxonomy for the first two environmental objectives (climate
change mitigation and adaptation) that came into force and apply
for the 2021 fiscal year. Despite this, Getinge is very active in its
work on sustainability issues and has the target of being CO neu-
tral in its own operations by the end of 2025. These eorts include
investments in energy eciency equipment related to buildings
and investments in electric cars and, according to assessments,
some of these activities are considered to be defined under the
taxonomy. Current amounts for the activities in question and the
applied accounting policies are presented below.
2021 ANNUAL REPORT
74
Sustainability Report Auditor’s report on the statutory Sustainability Report
To the General Meeting of Shareholders in Getinge AB (publ),
corporate identity number 556408-5032
Engagement and responsibility
It is the Board of Directors who is responsible for the statutory
Sustainability Report, as defined on page 60, and that it has been
prepared in accordance with the Annual Accounts Act.
The scope of the audit
Our examination has been conducted in accordance with FAR’s au-
diting standard RevR 12 The auditor’s opinion regarding the statu-
tory Sustainability Report. This means that our examination of the
statutory Sustainability Report is substantially dierent and less in
scope than an audit conducted in accordance with International
Standards on Auditing and generally accepted auditing standards
in Sweden. We believe that the examination has provided us with
sucient basis for our opinion.
Opinions
A Sustainability Report has been prepared.
Gothenburg, March 30, 2022
Öhrlings PricewaterhouseCoopers AB
Peter Nyllinge Karin Olsson
Authorized Public Accountant Authorized Public Accountant
Auditor in Charge
Auditor’s report on the statutory
Sustainability Report
Annual Report
Contents
76 Administration Report
81 Guidelines for Remuneration
86 Remuneration Report
90 Proposed Appropriation of Profit
91 Group Financial statements
96 Group Notes
131 Parent Company Financial statements
135 Parent Company Notes
143 Auditor’s Report
2021 ANNUAL REPORT
76
Annual Report Administration Report
Administration Report
Operation and structure
Financial overview
During the year, net sales declined 9.3% to
SEK 27,049 M (29,819). Sales fell organ-
ically by 4.8%. In Acute Care Therapies,
sales amounted to SEK 15,527 M (18,719),
corresponding to an organic decline of
12.5%. Life Science’s net sales increased
organically by 29.8% to SEK 3,558 M (2,854).
Surgical Workflows’ sales in 2021 amount-
ed to SEK 7,965 M (8,246). Net sales rose
organically by 0.5%.
Americas represented the Group’s
largest market, accounting for 38% (38) of
sales, followed by EMEA at 37% (41). APAC
accounted for 25% (21) of sales.
Adjusted EBITA
Adjusted EBITA before restructuring and
acquisition costs and other items aecting
comparability amounted to SEK 5,212 M
(5,724).
Operating profit
The Group’s operating profit amounted to
SEK 4,371 M (4,784). Adjusted for restruc-
turing and acquisition costs and other
items aecting comparability, operating
profit amounted to SEK 4,939 M (5,261),
corresponding to 18.3% (17.6) of net sales.
Net financial items
Net financial items amounted to SEK
-183 M (-299), of which net interest items
comprised SEK -142 M (-246).
Profit before tax
The Group’s profit before tax declined to
SEK 4,188 M (4,485).
Taxes
The Group’s tax expense amounted to
SEK -1,187 M (-1,213), entailing a tax rate of
28% (27).
Tied-up capital
Inventories amounted to SEK 4,767 M
(4,513) and accounts receivable to
SEK 4,695 M (5,338). The return on equity
was 12.9% (15.1). Goodwill totaled SEK
19,681 M (17,427) at the end of the fiscal
year.
Investments
Investments in intangible assets and
tangible assets amounted to SEK 930 M
(1,045). Investments primarily pertained to
product development, production facili-
ties, production tools and IT projects.
Investments related to acquisitions of
businesses amounted to SEK 715 M (999),
primarily relating to the acquisition of
Talis Clinical LLC and the development
activities from Verrix.
Financial position and equity/assets ratio
Consolidated net interest-bearing debt fell
to SEK 3,609 M (7,509). The equity/assets
ratio amounted to 56.5% (47.7) and the
net debt/equity ratio to 0.14 (0.35). Equity
at year-end amounted to SEK 25,176 M
(21,486).
Cash flow
Cash flow from operating activities
amounted to SEK 6,560 M (7,199).
Class of shares and share data
For information regarding trading of shares
in the company, the number of shares,
shareholders, the classes of shares and
the rights associated with these classes of
share in the company, refer to the Getinge-
Share section on pages 148–149.
Events during the year
Financial impact of COVID-19
The outbreak of COVID-19 was charac-
terized by the WHO as a pandemic on
March 11, 2020 and is continuing to impact
people and society on a global scale. In
this situation, Getinge is prioritizing the
health and safety of its employees and is
taking measures to limit the spread of the
virus by following the instructions of the
relevant authorities. Getinge is also closely
following developments regarding the
pandemic and is continuously evaluating
the operational and financial eects. Some
minor measures to adjust costs were car-
ried out and action plans have been made
to further adjust costs and the business if
necessary.
The order intake for ventilators declined
in 2021 despite growing demand at the end
of the year due to a higher rate of infection.
However, demand for ECMO therapy prod-
ucts remained high, but the order intake
for the Acute Care Therapies business area
nevertheless declined organically by 15.7%.
A recovery could be seen in the business
area’s other product segments, which were
negatively impacted by the pandemic since
non-essential surgeries were postponed,
and the order intake rose. The new wave
of the pandemic caused by the omicron
variant meant that demand did not slow in
these product segments.
The order intake for the Life Science
business area rose organically by 26.0%.
This was largely due to higher demand for
sterilizers, which was previously negatively
aected by the COVID-19 pandemic. The
order intake for Sterile Transfer products
used to manufacture vaccines displayed
high growth. Surgical Workflows – the sole
business area that was negatively aected
by the pandemic – recovered compared
with 2020 and reported organic growth for
the full-year. In total, the order intake for
the business area increased organically by
15.4%.
It has been possible to continue work on
the installation and servicing of products
without any major disruptions, and this
was not negatively aected by restrictions
in key markets. The production operations
experienced logistics challenges and prob-
2021 ANNUAL REPORT
77
Administration Report Annual Report
lems with deliveries of components, which
could be resolved without any significantly
negative consequences arising. Challeng-
ing comparative figures as a result of large
deliveries of ventilators in 2020 contrib-
uted to a decline in sales and earnings for
Acute Care Therapies. A recovery could be
seen in areas of Acute Care Therapies that
are not directly linked to treating patients
with COVID-19, and that were negatively
impacted by the pandemic, despite the
negative impact of rising rates of infection.
Life Science’s sales and earnings were
positively impacted by higher sales growth
in almost all product categories, and sales
of Sterile Transfer products for manu-
facturing vaccines reported a high rate
of growth. Sales for Surgical Workflows
increased organically during the year
despite challenges related to purchasing
and logistics, which were managed suc-
cessfully. Earnings improved due to higher
volumes, productivity improvements and
cost savings.
As time passes, the situation regarding
the pandemic could result in negative
financial eects due to lower demand and
disruptions to purchasing, logistics and
production. It also cannot be ruled out
that installation and service of products
at hospitals and care facilities could be
limited by restrictions to reduce the spread
of the virus.
Restructuring of Acute Care Therapies’
production operations in the US
The planned consolidation of the oper-
ations in Mahwah and Fairfield to the
nearby plant in Wayne was completed in
2021. In total, the relocation is expected to
generate annual savings of SEK 40 M. In ad-
dition to these savings, the consolidation
will increase the concentration of skills
and result in a higher degree of control in
quality management and production. In
connection with the consolidation of the
operations, two properties were divested
during the year and the total capital gain
amounted to SEK 72 M.
Restructuring activities
and productivity improvements
In 2021, Getinge decided to carry out a
restructuring program at its site in Rasta,
Germany. The aim is to focus the future
operations at Rasta on research and
development and assembly of operating
tables with high added value and capital
goods in Cardiopulmonary. In parallel,
the company is expected to reduce costs
and improve productivity. Savings are
expected to be generated through capacity
reductions, eciency enhancements in
procurements and shared services as well
as outsourcing of non-core activities. The
program will continue in 2022, with the aim
of completing implementation by the end
of the year. Restructuring costs amounted
to approximately SEK 90 M, of which about
70% is related to Surgical Workflows and
the remainder to Acute Care Therapies.
Decision to establish production of
DPTE®-BetaBag in Merrimack, NH, USA
In 2021, Getinge decided to introduce
production of DPTE®-BetaBag at its existing
manufacturing site in Merrimack. With the
expansion, Getinge expects to double the
production capacity of DPTE®-BetaBag in
order to meet the positive growth in the
sterile transfer business, primarily driven by
increased demand for vaccine production.
The investment at the manufacturing site
in Merrimack, USA, will result in approxi-
mately 100 new job opportunities as well
as an inhouse training center to ensure
ecient and high-quality onboarding.
Work is progressing according to plan and
production in Merrimack could begin at the
end of 2021.
Getinge grows with social funding
In 2021, Getinge launched a framework
for social funding and a new social bond
of SEK 570 M. The new social bond was
issued on June 3, 2021 and has a matu-
rity of three years and an interest rate of
STIBOR 3 months +70 bps. The capital from
this social bond will be used to expand the
production of extracorporeal life support
(ECLS) products for treatment for patients
in a highly critical condition and to expand
the production of DPTE®-BetaBags, which
are used to minimize the risk of contami-
nation in connection with drug production,
such as COVID-19 vaccines and biophar-
maceutical drugs.
Adjustments to EU Medical
Device Regulation (EU MDR)
Work on meeting the requirements of the
new EU Medical Device Regulation (EU
MDR) started in 2019 by upgrading all of
Getinge’s manufacturing sites. In February
2020, the unit in Solna was the first of
Getinge’s manufacturing sites and the
Servo-u and Servo-n ventilators the unit’s
first products to be certified under the EU
MDR. Work on upgrading the remaining
manufacturing sites and products to meet
the new requirements continued in 2021.
At the end of 2021, 42% of the manufac-
turing sites had received their EU MDR
certificates. All of Getinge’s manufacturing
sites are expected to be verified under the
final implementation period of the new
regulations in 2024.
New products
A holistic solution for preparing multi-use
bioreactors from Applikon, a company ac-
quired by Getinge in 2020, was launched in
the first quarter. The end-to-end approach
includes dismantling of the bioreactor,
automated washing using Getinge’s
purpose-built wash rack, followed by an
integrated sterilization process enabling
three dierent types of loads in one cycle.
In the second quarter, it was announced
that clearance had been received from the
US FDA for several new soware solutions
for the Servo-u and Servo-n ventilators. In
addition to the latest soware upgrades,
Getinge also received clearance for the
new Servo-u MR ventilator for the MRI
room. This means that Getinge can expand
the Servo ventilator platform in the US. In
the second quarter, Getinge also launched
the HL 40 heart lung machine in Germany,
the Netherlands, Italy, France and Spain,
followed by Sweden, Australia, the UK
and Ireland, and the new Torin Artificial
Intelligence (AI) that improves eciency in
managing schedules for surgical proce-
dures.
In the fourth quarter, Getinge launched
a Volista VisioNIR feature in Maquet Volista
StandOP – an innovative solution which
allows surgical sta to keep the surgical
light on when performing open surgeries
using NIR fluorescence imaging systems.
In the same quarter, Getinge launched the
Rotaflow II Extracorporeal Life Support
(ECLS) System, together with the Perma-
nent Life Support (PLS) Set, which oers
up to 14 days of cardiopulmonary support.
Selement related to liability claims
for surgical mesh products.
In December 2021, Getinge’s subsidiary
Atrium Medical Corporation entered into
a selement agreement with the plainti’s
lead counsel related to the multidistrict
litigation (MDL) linked to surgical mesh
product liability in the US. An additional
provision of SEK 600 M was made to
account for the selement in addition to
2021 ANNUAL REPORT
78
Annual Report Administration Report
litigation expenses incurred to date. The
surgical mesh implants are manufactured
by Atrium Medical Corporation, which was
acquired by Getinge in 2011. Getinge made
a provision of SEK 1.8 billion in 2018 for
expected costs associated with surgical
mesh claims, based on information
available at the time. There are currently
about 3,200 plaintis in the MDL and the
selement aims to maximize the participa-
tion rate by the vast majority of claims filed
up until November 30, 2021. Getinge ex-
pects the selement to become final and
payment to be made during the first half of
2022. The selement is not an admission
of liability or wrongdoing by the company.
Getinge will continue to defend against
any litigation that the final agreement does
not resolve. Costs for such litigations are
not expected to be material.
Lawsuit against Moderna
Försäkringar and If
In the fourth quarter of 2020, Getinge
AB and its subsidiaries Atrium Medical
Corporation and Maquet Cardiovascular
US Sales, LLC filed a lawsuit against
the insurer Moderna Försäkringar (the
Swedish branch of Tryg Forsikring A/S
Denmark). The dispute concerns the right
to insurance compensation for expected
costs associated with the ongoing product
liability claims filed in Canada and the US
regarding surgical mesh products. The law-
suit involves disputed insurance coverage
of up to approximately SEK 500 M. In 2021,
a lawsuit was filed against If Skadeförsäk-
ringar AB (publ) regarding similar insur-
ance compensation of up to approximately
SEK 1 billion. The litigation against the
insurers is expected to continue in 2022.
New financial targets
Getinge presented new financial targets
for 2022–2025 at the Capital Markets Day
in November 2021. The new targets are
annual organic net sales growth of 4–6%
and adjusted EPS growth of above 10% on
average throughout the period.
Acquisition of operations
In September 2021, Getinge acquired
development activities related to biological
indicators from Verrix, an American start-up
company. The products are in a develop-
ment phase and not yet commercially
available but in the long term are intend-
ed to strengthen the Group’s oering
in sterile reprocessing. The purchase
price amounted to SEK 202 M, of which
SEK 127 M pertained to goodwill that is pri-
marily aributable to strategic advantages
in the form of growth opportunities and a
broader product range.
In December 2021, 100% of Talis Clinical
LLC, a US-based leading innovator of High
Acuity cloud-based soware solutions,
was acquired. The company’s oering
complements Getinge’s existing products
for the perioperative care process, critical
care support and ECMO therapy. Talis
Clinical has 56 employees and generated
sales of SEK 57 M in 2021. The purchase
price amounted to SEK 844 M, of which
SEK 248 M comprised contingent purchase
prices that may be paid in 2024 if specific
regulatory approval and certificates are
obtained. In addition, a maximum of USD
26.5 M may be paid in earn-outs if certain
financial targets are met. The goodwill that
arose in connection with the acquisition
amounted to SEK 782 M, and is primarily
aributable to strategic advantages and
sales-related synergies.
Selement agreements
with authorities in Brazil
As a consequence of ongoing government
investigations regarding anti-competitive
practices relating to the sale of medical de-
vices, mainly to public hospitals, Getinge
has previously entered into Selement
Agreements with the Brazilian Federal
Prosecutor’s Oce (Ministério Público
Federal) and the competition authority,
the Administrative Council for Economic
Defense (CADE). The negotiations with the
federal agency for internal control, public
transparency and counter-corruption,
Comptroller General of the Union (CGU),
are still pending.
Update regarding
Consent Decree with the FDA
Getinge signed the original Consent Decree
with the FDA in 2015 which encompassed
four production units in the US and
Germany. Plans for remedying identified
shortcomings have already been completed
and the work at the production unit in
Hechingen was completed in 2021. In addi-
tion, Getinge’s production units in Fairfield
and Mahwah received warning leers from
the FDA in autumn 2018 and the start of
2019. The reason for the warning leers was
routine inspections performed by the FDA
at these production units in 2018. The FDA’s
observations and opinions pertain to proce-
dures and processes linked to demands for
supplier checks, processes for the approval
of design changes and incident reporting.
The same observations were identified by
Getinge during internal inspections in the
fourth quarter of 2017. The local organization
has since worked to correct the shortcom-
ings in the quality management system.
Getinge has submied an action plan,
including activities and a related schedule,
to the FDA and improvements are proceed-
ing according to this plan.
Innovation and product development
Innovation and product development are
a cornerstone of the Group’s strategy to
strengthen the customer oering and
thereby ensure future organic growth.
The Group uses innovation and product
renewal to manufacture products, systems
and solutions with a documented ability
to deliver high-quality clinical results and
economic benefits. The Group’s research
and development costs amounted to
SEK 1,197 M (1,462) in 2021. Of this amount,
SEK 346 M (429) was capitalized as intan-
gible assets.
Personnel
At December 31, 2021, there were 10,729
(10,818) employees, of whom 1,225 (1,219)
were employed in Sweden. In 2021, Getinge
continued its extensive eorts to strength-
en the Group’s personnel and management
development. The work is based on an
analysis of the company’s needs for spe-
cialist and management competence and
the company’s demographic structure. The
Group also carried out activities intended
to further strengthen the commitment of
its employees and implemented digital
tools for personnel development. In 2021,
the Group also continued its long-term
endeavors to increase diversity and col-
laboration within the Group. Getinge has
a previously implemented policy to ensure
that all employees are given equal oppor-
tunity to develop and receive equal pay for
equal work, regardless of such factors as
gender, ethnicity or religion.
2021 ANNUAL REPORT
79
Administration Report Annual Report
Remuneration to senior executives
The guidelines for remuneration to senior
executives adopted at the 2021 AGM
and the Board’s proposal for guidelines
ahead of the 2022 AGM are presented
on pages 81–85. Besides the deviation
approved by the Board and supported by
the guidelines, which is described in the
Remuneration report, no deviations from
the guidelines have been decided and
no derogations from the procedure for
implementation of the guidelines have
been made. The remuneration report is
presented on pages 86–89.
Total remuneration to senior executives
amounted to SEK 126 M (137) in 2021. (Refer
to Note 29 for further information).
Sustainability Report
In accordance with Chapter 6, Section
11 of the Annual Accounts Act, Getinge
has chosen to prepare the Sustainability
Report as a separate report from the
Annual Report.
The statutory Sustainability Report is
defined on page 60. To support stake-
holders with extensive and comparable
disclosures, Getinge also publish an ESG
Addendum report in accordance with GRI.
A description of diversity on the Board
can be found on pages 40–41.
Environmental accounting
Getinge’s environmental activities are
based on the Group’s sustainability policy,
environmental policy and the international
ISO 14001 environmental management
standard. The 2019–2025 sustainability
program has been based on a materiality
analysis which anchors KPIs within the
entire organization. All manufacturing units
will implement and certify environmental-
management systems that meet the
standard. For acquisitions, the management
system is to be introduced and certified
within 24 months. The management system
ensures structured environmental work
and provides a basis for the reporting of
environmental performance that Getinge’s
manufacturing units submit every quarter.
Through the targeted activities related to
environmentally compatible product devel-
opment, EcoDesign, the aim is to reduce the
environmental impact from manufacturing
and product usage, and oer customers
sustainable market oerings.
One facility in Sweden conducts opera-
tions requiring permits or declaration un-
der the Swedish Environmental Code. This
facility holds the necessary permits. The
operations were conducted in accordance
with applicable permits and conditions
during the year. Further information
concerning Getinge’s environmental work
is presented on pages 19, 63–66 and 70–71.
Risks and uncertainties
2021 was yet another year in which the on-
going pandemic dominated the operations.
Overall, the Group was highly successful
in managing the challenges caused by the
pandemic, such as a shortage of critical
components and high uncertainty in the
transport sector. By working intensively
and closely with suppliers and partners, it
was possible to identify solutions, whereas
others faced problems in the form of dis-
ruptions to their production and delivery
chains. It cannot be ruled out that Getinge
will be aected by such problems in the
next quarters.
In addition, Getinge is exposed to risk
related to other potential external shocks,
besides the COVID-19 pandemic, such
as geopolitical risks, natural disasters,
terrorism, pandemics, etc. Active business
intelligence can detect some of these
risks at an early stage and the Group will
then have the chance to adapt to the new
situation. A process to further enhance the
Group’s work on continuity risks was also
started in 2021.
External factors such as geopolitical ten-
sions and possible associated sanctions
are risks that could aect Getinge’s ability
to expand in markets that have signifi-
cant needs for the Group’s products and
solutions. It can also not be ruled out that
Getinge could be exposed to conflicting
trade sanctions as a result of the geopolit-
ical situation.
Technological advances are currently
being made at a very fast pace, which is
aecting the competitive situation in the
market. The Group assigns considerable
resources to developing its customer
oering, such as in the form of a higher
degree of connected products. In this way,
information about how the products are
used clinically can be transferred from the
customers back to Getinge, and this infor-
mation will then form the basis of the next
stage of product development. There is a
certain risk that new, or existing, players
could develop transformative technology
more successfully than Getinge and thus
gain an advantage in the market.
The fact that Getinge operates in a
competitive market also means that the
Group is subject to risks related to product
quality from a customer perspective, and if
Getinge’s products do not meet customer
expectations, this could entail a higher risk
of customers choosing alternative suppli-
ers. Getinge applies a far-reaching quality
process that aims to ensure a high and
even level of quality to meet customers’
legitimately high requirements. However, it
cannot be ruled out that Getinge might not
meet customer expectations and that this
could entail a risk of lower sales and lower
profitability over time.
The medical device market is subject to
strict regulatory frameworks and supervi-
sion of regulatory compliance. This results
in an extensive need for evaluation, quality
control and documentation. Getinge invests
major resources in ensuring compliance
with such regulations. However, it cannot
be ruled out that the Group’s financial
position and earnings may be negatively
impacted in the future due to diculties in
complying with the requirements of authori-
ties or changes to them.
Furthermore, Getinge is subject to risks
related to laws and regulations, mainly
pertaining to business ethics. Corruption in
particular remains a risk in many markets in
which Getinge operates and has ambitions
to grow its business. The Group has a zero
tolerance policy when it comes to devia-
tions in this area and takes extensive action
in business ethics such as responsible
leadership and other training courses. The
aim is for all employees to undergo training
in business ethics every year. Business
ethics regulations also apply to external
distributors who sell the Group’s products
in markets in which it does not have its own
presence. Further information about the
Group’s financial risk management can be
found on pages 53–57.
Financial risk management
Getinge is exposed to a number of financial
risks in its operations. Financial risks prin-
cipally pertain to risks related to currency
risks, interest-rate risks, financing risks
2021 ANNUAL REPORT
80
Annual Report Administration Report
and credit and counterparty risks. Risk
management is regulated by the finance
policy adopted by the Board and a Treasury
directive decided by the Getinge Executive
Team which supplements the finance
policy. The ultimate responsibility for
managing the Group’s financial risks and
developing methods and principles of
financial risk management lies with the
Getinge Executive Team and the finance
function. For more detailed information
concerning these risks, refer to Note 28
Financial risk management. The Group
has a number of participations in foreign
operations whose net assets are exposed
to currency risks. Currency exposure
that arises from net assets in the Group’s
foreign operations is primarily managed by
borrowing in said foreign currency.
Currency
The eect of exchange-rate movements on
earnings and equity below is calculated us-
ing volumes and earnings in foreign curren-
cy for 2021, taking into consideration cur-
rency hedging that has been conducted. In
addition, there is the exchange-rate impact
on net financial items related to interest
expenses in foreign currencies. For a rate
movement of 5%, the impact on equity of
a remeasurement of the Group’s portfolio
of currency derivatives held for hedging
purposes is about SEK 10 M. At a 5% rate
movement, the impact of other translation
eects on equity is approximately SEK
1,245 M. The extent to which earnings are
impacted by exchange-rate fluctuations
is detailed in the following table, based on
the exchange rates specified.
Currency:
estimated
rate in
2022
Net volume
2021, M
Impact in
SEK M of 5%
rate move-
ment
CNY: 1.42 1,083 +/- 77
EUR: 10.23 -170 +/- 87
JPY: 0.0785 7,335 +/- 29
USD: 9.04 391 +/- 177
Sensitivity analysis
Getinge’s earnings are aected by a series
of external factors. The following table
shows how changes to some of the key
factors that are important to Getinge could
have aected the Group’s profit before tax
in 2021.
Change in
profit before tax SEK M
Price change +/- 1% +/- 270
Cost of goods
sold +/- 1% +/- 135
Salary costs +/- 1% +/- 96
Interest rates +/- 1 percent-
age point +/- 19
The eect of a +/- 1 percentage point
change in interest rates on the Group’s
profit before tax was calculated based on
the Group’s interest-bearing liabilities,
excluding lease and pension liabilities,
at year-end 2021. The impact of a +/- 1
percentage point change in interest rates
on equity is about SEK 9 M. Consideration
was given to the eect of the various
risk-management measures that Getinge
applies in accordance with its approved
finance policy.
Outlook
Organic sales growth is expected to be in
the upper part of the range of 4-6% for the
full-year 2022.
Events aer the end of the
reporting period
Except what is described below, no signifi-
cant events have occurred aer the end of
the finacial year.
New Executive Vice Presidents appointed
In January 2022, Getinge appointed two
new Executive Vice Presidents and mem-
bers of the Getinge Executive Team: Elin
Frostehav and Eric Honroth. All changes
are eective as of April 1, 2022.
Elin Frostehav has been appointed Pres-
ident Acute Care Therapies and member of
the Getinge Executive Team. Elin currently
serves as Vice President Critical Care, a
product area within Acute Care Therapies
in Getinge. Elin joined Getinge in 2019 and
previously held leading global positions
within Semcon, an international technolo-
gy company, in the areas of product devel-
opment and digitalization. Prior to Semcon,
Elin held various positions at FlexLink, a
global factory automation company. Elin
succeeds Jens Viebke who will take on a
new role in Getinge as Executive Vice Pres-
ident Research & Business Development,
focusing on Getinge’s Research Programs
and M&A activities. In this role, Jens
Viebke will continue to report to Maias
Perjos, President & CEO, but no longer be a
member of the Getinge Executive Team.
Eric Honroth has been appointed
President Life Science and member of the
Getinge Executive Team. Eric is currently
President North America Region in Getinge
and has been with the company since 2018.
He has more than 20 years of extensive
experience in global leadership roles in the
medical devices industry, including roles at
Becton Dickinson, CareFusion and Abbo
Vascular. Eric succeeds Harald Castler
who aer a long and successful career at
Getinge has decided to retire.
Acquisition of Irasun GmbH
Aer the end of the reporting period,
Getinge completed a minor acquisition of
Irasun GmbH, which is based in Munich.
The company develops products for
venous drainage and temperature control,
which can be used in combination with
heart lung machines and equipment
for extracorporeal life support (ECLS).
Through the acquisition, Getinge broadens
its portfolio to include innovative solutions
in surgical perfusion.
Russia’s invasion of Ukraine
The Russian invasion of Ukraine could
have a negative impact on Getinge Group’s
financial results and financial position.
Currently, it is not possible to assess the
consequenses of the conflict for Getinge.
The Group’s net sales in Russia and
Ukraine during 2021 was approximately
1% and the equity was less than 1% of the
Group’s total equity.
2021 ANNUAL REPORT
81
Guidelines for remuneration Annual Report
Current guidelines for remuneration
to senior executives
Adopted at the 2021 Annual General Meeting
1. Scope of the guidelines, etc.
These guidelines cover the individuals who,
during the validity period of the guidelines,
are included in the group management of
Getinge AB (publ), below referred to as “Se-
nior Executives”. The guidelines shall apply
for remuneration agreed and amendments
in any remunerations already agreed, as of
the adoption of the guidelines by the Annual
General Meeting 2021. The guidelines are
not applicable on any remuneration
resolved by the General Meeting.
2. Promotion of Getinge’s business
strategy, long-term interests and
sustainability, etc.
A prerequisite for successful implementa-
tion of the company’s business strategy and
safeguarding the company’s long-term in-
terests is that the company is able to recruit
and retain qualified personnel. The main
principle is that remuneration and other em-
ployment conditions for Senior Executives,
shall be in line with market terms and com-
petitive on every market where Getinge op-
erates, to ensure that competent and skilled
personnel can be aracted, motivated and
retained. Individual levels of remuneration
shall be based on experience, competence,
level of responsibility and performance, and
also the country were the Senior Executive
is employed. These guidelines promote the
company’s business strategy, long-term
interests and sustainability as described
in the below section regarding criteria for
variable remuneration, and contribute to the
company’s ability to, on a long-term basis,
retain qualified personnel.
For information regarding Getinge’s
business strategy, please see the company’s
annual reports and the website (hps://
www.getinge.com).
3. Principles for various types
of remuneration, etc.
The total remuneration to Senior Execu-
tives shall be in line with market terms and
consist of base salary (fixed cash remuner-
ation), variable cash remuneration, pension
benefits and other benefits. In addition, the
General Meeting may – irrespective of these
guidelines – resolve on, for instance, share-
or share price-related remunerations.
Fixed remuneration
The fixed remuneration, meaning the base
salary, shall be based on the individual
employee’s area of responsibility, authority,
competence, experience and performance.
Variable remuneration
The allocation between base salary and
variable remuneration shall be in proportion
with the area of responsibility and authority
of the executive. The variable remuneration
shall always be pre-limited to a maximum
amount and related to predetermined and
measurable criteria, designed to contribute
to the business strategy and long-term
added value of the company.
The sustainability work is integrated in
the company’s day-to-day operations. If
the company’s principles for sustainability
or ethical guidelines are not complied
with, the company has the possibility to
withhold any variable remuneration or
reclaim already awarded remuneration. The
annual variable remuneration is designed to
promote the company’s strategy to produce
and oer products that can support in
making health care more ecient in the
long-term and to provide beer health care
for the people who need Getinge’s products.
If the above-mentioned activities are per-
formed in an ecient and sustainable way,
one outcome is improved financial results
and increased capital eciency, which
constitutes the foundation of the variable
remuneration.
Annual variable remuneration
For Senior Executives, the annual variable
remuneration (annual bonus) shall be
capped at 70% and, in specific cases, were
the nature of the position, the competitive
situation and the country of employment so
require, capped at 90 % of the fixed annual
base salary. The variable remuneration shall
be based on objectives set by the Board of
Directors. These objectives are related to
(i) earnings, (ii) organic growth, (iii) working
capital and cash flow. In order to promote
the interest of the shareholders’, the compa-
ny’s values and collectively strive to achieve
the business strategy, long-term interests
and sustainable development of the compa-
ny, all members of the group management
have the same targets for annual variable
remuneration.
Variable long-term cash bonus
(LTI-bonus)
In addition to base salary and annual
variable remuneration as described above,
Senior Executives can obtain a variable
long-term bonus (LTI-bonus), which rewards
clear, measurable performance targets and
is conditioned by continued employment at
the end of the vesting period for the LTI-bo-
nus (with some customary exceptions). The
criteria for payment of the LTI- bonus shall
be constructed to promote the long-term
interests and sustainable development of
Getinge by a clear connection to the busi-
ness strategy. The criteria for the LTI-bonus
is connected to earnings per share, adjusted
in accordance with any acquisitions, divest-
ments, restructuring costs and/or other
material non-recurrent items. By connecting
the performance target to the shareholders’
objective, a common interest to promote
Getinge’s business strategy, long-term
interests and value creation is created.
The vesting period for the LTI-bonus shall
be not less than three financial years. The
payment of LTI-bonus in a program shall,
during a three-year period, be capped to an
amount corresponding to one year’s base
salary. A new LTI-bonus program can be
set up every year with a duration period of
three years. Senior Executives of the group
management shall invest not less than 50%
of the received LTI-bonus (net, aer taxes
paid) in Getinge shares, until the Senior
Executive’s own total holdings of shares
correspond to one year’s salary (gross). The
Senior Executive shall keep these shares for
at least three years.
2021 ANNUAL REPORT
82
Annual Report Guidelines for remuneration
Determination of result for variable
remuneration, etc.
When the measuring period for achievement
of the criteria for payment of the variable
remuneration has expired, the Board of
Directors shall, based on proposal by the Re-
muneration Commiee, establish to which
extent the criterias’ are achieved. In their
assessment on whether the criterias’ are
achieved or not, the Board of Directors may,
in accordance with proposal by the Remu-
neration Commiee, allow exception from
the established targets on the conditions
set out in the below item 5. The assessment
of achievement of the financial targets shall
be based on the company’s most recent
published financial information, with any
adjustments predetermined by the Board of
Directors when implementing the program.
Variable cash payment can be awarded
aer the expiration of the measuring period
(annual variable remuneration) or be subject
to postponed payment (LTI-bonus).
Getinge is actively working to ensure
that the company is managed in the most
sustainable, responsible and ecient way
possible, and that applicable legislations
and regulations are complied with. Getinge
also apply internal rules, including a code
of conduct and dierent group- wide
steering documents (policies, instructions
and guidelines) within a range of dierent
areas. Variable remuneration shall not be
awarded, and variable remuneration can
be reclaimed, if the Senior Executive has
acted contrary to these rules, principles or
the company’s code of conduct. Variable
remuneration shall not be awarded if the
earnings before tax is negative. The Board
of Directors shall also have the possibil-
ity to, in accordance with legislation or
agreement, in whole or partly, reclaim any
variable wrongly awarded remuneration.
Other variable remuneration
Additional variable cash remuneration
can be awarded in case of extraordinary
circumstances, provided such extraordinary
arrangements are only conducted for the
purpose of recruiting or retaining execu-
tives. Such remuneration may not exceed an
amount corresponding to 100% of the base
salary and only be awarded once a year per
individual. Resolution on such remuneration
shall be made by the Board of Directors and
based on a proposal by the Remuneration
Commiee. In addition to variable remuner-
ation, resolutions on share- or share price
related incentive plans, in accordance with
the above, may from time to time be made.
Pensions and health insurance
(sw.
sjukförsäkring)
The CEO has right to retire from the age of
62 and other Senior Executives has right to
retire in accordance with applicable local
regulations.
Pension contributions for the CEO shall
amount to no more than 40% of the fixed
base salary on a defined contribution basis.
Variable cash remuneration shall not qualify
for pension benefits.
Other Senior Executives shall be
covered by ITP1 or ITP2 and the pension
benefits shall be on a defined contribution
basis. Variable cash remuneration shall
not qualify for pension benefits in general,
except where mandatory by collective bar-
gaining agreement provisions applicable
for the executive. In such case, this shall be
considered when creating the total bene-
fits package. Senior Executives covered by
ITP2, with the option to choose alternative
ITP has, according to the ITP2-pension
plan, benefits up to 7.5 income base
amounts (sw. inkomstbasbelopp) (“IBB”)
and health insurance covering a salary up
to 30 IBB. On portions of the salary above
the cap of the ITP2- plan of 30 IBB, there
is a supplementary contribution of 30% of
the pensionable salary.
In addition to the above, Senior Exec-
utives can be covered by an additional
health income insurance (sw. sjukinkomst-
försäkring) for portions of the salary over 30
IBB, premium relief insurance (sw. premie-
befrielseförsäkring) and part-time pension
premium, amounting to not more than 3%
of the fixed base salary.
For employments governed by other than
Swedish regulations, pension benefits and
other benefits may be duly amended to
comply with mandatory rules or established
local regulations, taking into consideration,
to the extent possible, the overall purpose
of these guidelines.
Other benefits
Other benefits such as company car,
additional medical insurance (sw. sjukvårds-
försäkring) and company health care (sw.
företagshälsovård), may be provided to
the extent this is considered to be in line
with market terms for Senior Executives on
similar positions on that local market. The
total value of such benefits may not exceed
10% of the fixed base salary.
Conditions for termination
Senior Executives shall have a permanent
employment. If the company terminates
the employment, the notice period shall
not exceed twelve months. Upon termina-
tion of employment, the total of the fixed
salary during the notice period together
with severance pay may not exceed an
amount equivalent to two years fixed base
salary for the CEO, and one year for other
executives. If the executive terminates the
employment, the notice period shall not
exceed six months and be without any right
to severance pay.
Senior Executives may be entitled to
compensation for any competition restric-
tions aer the termination of employment,
however, only to the extent severance pay
for the corresponding period is not award-
ed. The purpose of such compensation is to
compensate the executive for any gap be-
tween the monthly base salary at the notice
of termination and (lower) monthly income
received, or that could be received, by a new
employment, assignment or own business.
The compensation can be awarded during
the period of the competition restriction,
however, not more than for 12 months aer
the termination of employment.
Salary and employment
conditions for employees
When preparing the Board of Director’s
proposal for these remuneration guidelines,
salary and employment conditions for the
company’s employees have been consid-
ered. This have been made by including
information of the total income of the
employees, the components of the remuner-
ation and the increase and growth rate over
time, as part of the Remuneration
Commiee’s and the Board of Directors’
basis for decision when evaluating whether
the guidelines and the limitations set out
herein are reasonable. The increase of the
gap between the remuneration to Senior
Executives and remuneration to other
employees will be disclosed in the remuner-
ation report.
4. The resolution process to
determine, review and implement
the guidelines
The Board of Directors has established a
Remuneration Commiee. The Commit-
tee’s tasks include preparing the Board of
Directors’ decision to propose guidelines
for Senior Executive remuneration. These
are reviewed annually and new proposals
2021 ANNUAL REPORT
83
Guidelines for remuneration Annual Report
The Board of Directors’ proposal to guidelines
for remuneration to Senior Executives
The Board of Directors of Getinge AB (publ) proposes that the 2022 Annual General Meeting resolves
on the following guidelines for remuneration to Senior Executives.
1. Scope of the guidelines, etc.
These guidelines cover the individuals
who, during the validity period of the guide-
lines, are included in the group manage-
ment of Getinge AB (publ), below referred
to as “Senior Executives”. The guidelines
shall apply for remuneration agreed and
amendments in any remunerations already
agreed, as of the adoption of the guidelines
by the 2022 Annual General Meeting. The
guidelines are not applicable on any remu-
neration resolved by the General Meeting.
2. Promotion of Getinge’s business
strategy, long-term interests and
sustainability, etc.
A prerequisite for successful implemen-
tation of the company’s business strategy
and safeguarding the company’s long-term
interests is that the company is able to
recruit and retain qualified personnel. The
main principle is that remuneration and
other employment conditions for Senior
Executives, shall be in line with market
terms and competitive on every market
where Getinge operates, to ensure that
competent and skilled personnel can
be aracted, motivated and retained.
Individual levels of remuneration shall be
based on experience, competence, level of
responsibility and performance, and also
the country were the Senior Executive is
employed. These guidelines promote the
company’s business strategy, long-term
interests and sustainability as described
in the below section regarding criteria for
variable remuneration, and contribute to
the company’s ability to, on a long-term
basis, retain qualified personnel.
For information regarding Getinge’s busi-
ness strategy, please see the company’s
annual reports and the website (hps://
www.getinge.com).
3. Principles for various types
of remuneration, etc.
The total remuneration to Senior Execu-
tives shall be in line with market terms and
consist of base salary (fixed cash remu-
neration), variable cash remuneration,
pension benefits and other benefits. In
addition, the General Meeting may – irre-
spective of these guidelines – resolve on,
for instance, share- or share price-related
remunerations.
Fixed remuneration
The fixed remuneration, meaning the base
salary, shall be based on the individual
employee’s area of responsibility, authority,
competence, experience and performance.
Variable remuneration
The allocation between base salary and
variable remuneration shall be in propor-
tion with the area of responsibility and
for guidelines shall be draed by the Board
at least every fourth year and presented to
the Annual General Meeting for resolution.
The guidelines shall be in force until new
guidelines are adopted by the Annual
General Meeting.
The Remuneration Commiee shall also
monitor and evaluate programs for variable
remuneration to Senior Executives, the
guidelines for remuneration to Senior Exec-
utives, as well as the current remuneration
structures and compensation levels in the
company, and provide recommendations to
the Board of Directors in relation to remu-
neration to the CEO. Regarding resolution
on remuneration to other Senior Executives
in accordance with the guidelines (other
than the specifically regulated above) the
CEO shall consult with the Remuneration
Commiee.
The CEO and other members of the group
management do not participate in the
Board of Directors’ processing of, and res-
olutions on, remuneration-related maers
when such maers concerns them.
The Board of Directors shall annually
draw up a remuneration report that shall
be presented to the Annual General Meet-
ing for approval.
5. Deviations from the guidelines
The Board of Directors may temporarily
resolve to deviate from the guidelines,
entirely or partly, if in a specific case there
is special cause for the deviation and a
deviation is necessary to serve the com-
pany’s long-term interests, a sustainable
development of the company or to ensure
the company’s financial viability. As set
out above, the Remuneration Commiee’s
tasks include preparing the Board of Direc-
tors’ resolutions in remuneration-related
maers. This includes any resolutions to
deviate from the guidelines.
6. Description of material changes
of the guidelines and how the share-
holders' opinions are considered
No material amendments have been made
to the guidelines for remuneration to Senior
Executives. In relation to the guidelines for
remuneration to Senior Executives adopted
on the Annual General Meeting 2020,
the validity of the guidelines have been
amended to correspond with applicable
regulations entailing that the Board of
Directors shall dra a proposal for new
guidelines every fourth year and not every
year as earlier stated.
No remarks on the remuneration guide-
lines have emerged.
7. Other
The guidelines entail a level of remuneration,
which in principle is equivalent to the remu-
neration for the financial year 2020.
Information regarding remuneration,
etc. to Senior Executives during the
financial year 2020 is set out in Note 29
of the Annual Report 2020, including any
previously resolved remuneration that has
not yet been due for payment, and in the
remuneration report.
Gothenburg, March 2021
The Board of Directors of Getinge AB
2021 ANNUAL REPORT
84
Annual Report Guidelines for remuneration
authority of the Senior Executive. The
variable remuneration shall always be
pre-limited to a maximum amount and
related to predetermined and measurable
criteria, designed to contribute to the
business strategy and long-term added
value of the company.
The annual variable remuneration is
designed to promote the company’s strat-
egy to produce and oer products that
can support in making health care more
ecient in the long-term and to provide
beer health care for the people who need
Getinge’s products. If the above-mentioned
activities are performed in an ecient
and sustainable way, one outcome is
improved financial results and increased
capital eciency, which constitutes the
foundation of the variable remuneration.
The sustainability work is integrated in the
company’s day-to-day operations. If the
company’s principles for sustainability or
ethical guidelines are not complied with,
the company has the possibility to with-
hold any variable remuneration or reclaim
already awarded remuneration.
Annual variable remuneration
For Senior Executives, the annual variable
remuneration (annual bonus) shall be
capped at 70% and, in specific cases, were
the nature of the position, the competitive
situation and the country of employment
so require, capped at 90% of the fixed
annual base salary. The variable remuner-
ation shall be based on objectives set by
the Board of Directors. These objectives
are related to (i) earnings, (ii) organic
growth, (iii) working capital and cash flow,
and (iv) sustainability. In order to promote
the interest of the shareholders’, the
company’s values and collectively strive to
achieve the business strategy, long-term
interests and sustainable development
of the company, all members of the group
management have the same targets for
annual variable remuneration.
Variable long-term cash bonus
(LTI-bonus)
In addition to base salary and annual
variable remuneration as described above,
Senior Executives can obtain a variable
long-term bonus (LTI-bonus) The target that
forms the basis for the LTI-bonus is adjusted
earnings per share for a three year period,
adjusted for the category of adjustment
items decided at implementation of the
program by the Board of Directors at the
recommendation by the Remuneration
Commiee. By connecting the performance
target to the shareholders’ objective, a
common interest to promote Getinge’s
business strategy, long-term interests and
value creation is created. Payment is subject
to continued employment at the end of the
vesting period for the LTI-bonus (with some
customary exceptions).
The vesting period for the LTI-bonus shall
be not less than three financial years. The
payment of LTI-bonus per each three-year
program shall be capped to 33% of one
year’s base salary. A new LTI-bonus program
can be set up every year with a duration
period of three years. Senior Executives of
the group management shall invest not less
than 50% of the received LTI-bonus (net,
aer taxes paid) in Getinge shares, until
the Senior Executive’s own total holdings
of shares correspond to one year’s salary
(gross). The Senior Executive shall keep
these shares for at least three years.
Limitation of total variable
remuneration for the CEO
For the CEO, the total payment of variable
remuneration (annual variable remunera-
tion and LTI-bonus), in addition to what is
previously mentioned, annually be limited
so that the total variable remuneration do
not exceed 100% of the fixed salary. This
applies to variable remuneration that is
paid 2022 or later.
1)
Determination of result for variable
remuneration, etc.
When the measuring period for achieve-
ment of the criteria for payment of the
variable remuneration has expired, the
Board of Directors shall, based on proposal
by the Remuneration Commiee, establish
to which extent the criteria are achieved.
In their assessment on whether the criteria
are achieved or not, the Board of Direc-
tors may, in accordance with proposal
by the Remuneration Commiee, allow
exception from the established targets on
the conditions set out in the below item
5. The assessment of achievement of the
financial targets shall be based on the
company’s most recent published financial
information, with any adjustments
predetermined by the Board of Directors
when implementing the program. Variable
cash payment can be awarded aer the
expiration of the measuring period (annual
variable remuneration) or be subject to
postponed payment (LTI-bonus).
Getinge is actively working to ensure
that the company is managed in the most
sustainable, responsible and ecient way
possible, and that applicable legislations
and regulations are complied with. Getinge
also apply internal rules, including a code
of conduct and dierent group-wide
steering documents (policies, instructions
and guidelines) within a range of dierent
areas. Variable remuneration shall not be
awarded, and variable remuneration can
be reclaimed, if the Senior Executive has
acted contrary to these rules, principles or
the company’s code of conduct. Variable
remuneration shall not be awarded if the
earnings before tax is negative. The Board
of Directors shall also have the possibility
to, in accordance with legislation or
agreement, in whole or partly, reclaim any
variable wrongly awarded remuneration.
Other variable remuneration
Additional variable cash remuneration can
be awarded in case of extraordinary cir-
cumstances, provided such extraordinary
arrangements are only conducted for the
purpose of recruiting or retaining execu-
tives. Such remuneration may not exceed
an amount corresponding to 100% of the
base salary and only be awarded once a
year per individual. Resolution on such
remuneration shall be made by the Board
of Directors and based on a proposal by
the Remuneration Commiee. In addition
to variable remuneration, resolutions on
share- or share price related incentive
programs, in accordance with the above,
can from time to time be made.
Pension and health insurance
(sw.
sjukförsäkring
)
The CEO has right to retire from the age of
62 and other Senior Executives has right to
retire in accordance with applicable local
regulations.
Pension contributions for the CEO shall
amount to no more than 40% of the fixed
base salary on a defined contribution
basis. Variable cash remuneration shall not
qualify for pension benefits.
Other Senior Executives shall be
covered by ITP1 or ITP2 and the pension
benefits shall be on a defined contribution
basis. Variable cash remuneration shall
not qualify for pension benefits in general,
except where mandatory by collective bar-
gaining agreement provisions applicable
for the executive. In such case, this shall be
considered when creating the total bene-
1) As the rule on limitation of maximum payment has been applied discretionary by the Board of Directors during 2021/2022 already before
the implementation of the guidelines, the part of the variable remuneration (“exceeding remuneration”) that has been earned during 2021
or earlier that is not paid during 2022 by applying this limitation, shall be payable during 2023 or later, provided that sufficient amount up to
100% of the fixed salary is available the current year, until the full exceeding remuneration has been paid.
2021 ANNUAL REPORT
85
Guidelines for remuneration Annual Report
fits package. Senior Executives covered by
ITP2, with the option to choose alternative
ITP has, according to the ITP2-pension
plan, benefits up to 7.5 income base
amounts (sw. inkomstbasbelopp) (“IBB”)
and health insurance covering a salary up
to 30 IBB. On portions of the salary above
the cap of the ITP2- plan of 30 IBB, there
is a supplementary contribution of 30% of
the pensionable salary.
In addition to the above, Senior Exec-
utives can be covered by an additional
health income insurance (sw. sjukinkom-
stförsäkring) for portions of the salary
over 30 IBB, premium relief insurance (sw.
premiebefrielseförsäkring) and part-time
pension premium, amounting to not more
than 3% of the fixed base salary.
For employments governed by other
than Swedish regulations, pension benefits
and other benefits may be duly amend-
ed to comply with mandatory rules or
established local regulations, taking into
consideration, to the extent possible, the
overall purpose of these guidelines.
Other benefits
Other benefits such as company car, ad-
ditional medical insurance (sw. sjukvårds-
försäkring) and company health care (sw.
företagshälsovård), may be provided to
the extent this is considered to be in line
with market terms for Senior Executives
on similar positions on that local market.
The total value of such benefits may not
exceed 10% of the fixed base salary.
Conditions for termination
Senior Executives shall have a permanent
employment. If the company terminates
the employment, the notice period shall
not exceed twelve months. Upon termina-
tion of employment, the total of the fixed
salary during the notice period together
with severance pay may not exceed an
amount equivalent to two years fixed
base salary for the CEO, and one year for
other executives. If the Senior Executive
terminates the employment, the notice
period shall not exceed six months and be
without any right to severance pay.
Senior Executives may be entitled to
compensation for any competition restric-
tions aer the termination of employment,
however, only to the extent severance pay
for the corresponding period is not award-
ed. The purpose of such compensation is
to compensate the Senior Executive for
any gap between the monthly base salary
at the notice of termination and (lower)
monthly income received, or that could be
received, by a new employment, assign-
ment or own business. The compensation
can be awarded during the period of the
competition restriction, however, not more
than for 12 months aer the termination of
employment.
Salary and employment
conditions for employees
When preparing the Board of Director’s
proposal for these remuneration guide-
lines, salary and employment conditions
for the company’s employees have been
considered. This have been made by
including information of the total income
of the employees, the components of the
remuneration and the increase and growth
rate over time, as part of the Remuneration
Commiee’s and the Board of Directors’
basis for decision when evaluating
whether the guidelines and the limitations
set out herein are reasonable. The increase
of the gap between the remuneration to
Senior Executives and remuneration to
other employees will be disclosed in the
remuneration report.
4. The resolution process to
determine, review and implement
the guidelines
The Board of Directors has established a
Remuneration Commiee. The Commit-
tee’s tasks include preparing the Board of
Directors’ decision to propose guidelines
for Senior Executive remuneration. These
are reviewed annually and new proposals
for guidelines shall be draed by the Board
at least every fourth year and presented to
the Annual General Meeting for resolu-
tion. The guidelines shall be in force until
new guidelines are adopted by the Annual
General Meeting.
The Remuneration Commiee shall also
monitor and evaluate programs for variable
remuneration to Senior Executives, the
guidelines for remuneration to Senior Exec-
utives, as well as the current remuneration
structures and compensation levels in the
company, and provide recommendations
to the Board of Directors in relation to
remuneration to the CEO. Regarding
resolution on remuneration to other Senior
Executives in accordance with the guide-
lines (other than the specifically regulated
above) the CEO shall consult with the
Remuneration Commiee.
The CEO and other members of the
group management do not participate in
the Board of Directors’ processing of, and
resolutions on, remuneration-related mat-
ters when such maers concerns them.
The Board of Directors shall annually
prepare a remuneration report that shall
be presented to the Annual General
Meeting for approval.
5. Deviations from the guidelines
The Board of Directors may temporarily
resolve to deviate from the guidelines,
entirely or partly, if in a specific case there
is special cause for the deviation and a
deviation is necessary to serve the com-
pany’s long-term interests, a sustainable
development of the company or to ensure
the company’s financial viability. As set
out above, the Remuneration Commiee’s
tasks include preparing the Board of Direc-
tors’ resolutions in remuneration-related
maers. This includes any resolutions to
deviate from the guidelines.
6. Description of material changes
of the guidelines and how the share-
holders’ opinions are considered
The current applicable guidelines for remu-
neration to Senior Executives were adopt-
ed on the 2021 Annual General Meeting.
These guidelines correspond in principle to
the guidelines adopted by the 2021 Annual
General Meeting, save for that (i) the tar-
gets for annual variable remuneration have
been supplemented with a sustainability
target, (ii) the measurement period for the
LTI-bonus covers adjusted earnings per
share during a three-year period, and (iii)
the payment of variable remuneration to
the CEO during one year has been limited
to a maximum of one year’s salary.
No remarks on the remuneration guide-
lines have emerged in connection with
dealings at General Meetings.
7. Other
The guidelines entail a level of remunera-
tion, which in principle is equivalent to the
remuneration for the financial year 2021.
Information regarding remuneration,
etc. to Senior Executives during the
financial year 2021 is set out in Note 29
of the Annual Report 2021, including any
previously resolved remuneration that has
not yet been due for payment, and in the
remuneration report.
Gothenburg in March 2022
The Board of Directors of
Getinge AB (publ)
2021 ANNUAL REPORT
86
Annual Report Remuneration Report
Remuneration report 2021
Introduction
This report reflects how the guidelines
for remuneration to Senior Executives,
adopted at the Annual General Meeting
2021, have been implemented and applied
during 2021. The report also provide
details on the remuneration to the CEO,
how the performance targets for variable
remuneration has been applied, the
synthetic option program issued by the
majority shareholder and information that
the company has not implemented any
share and share-price related incentive
programs. This report has been prepared
in compliance with the Swedish Compa-
nies Act and the Rules on remuneration of
the Board and Executive Management and
Incentive programs issued by the Swedish
Corporate Governance Board (the Remu-
neration Rules).
Further information on remuneration
to Senior Executives is available in Note
29 on page 126–127 of the Annual Report
2021. Information on the work by the
Remuneration Commiee in 2021 is set out
in the corporate governance report, which
is included on pages 34-59 of the Annual
Report 2021.
Remuneration to the members of the
Board of Directors is not covered by this
report. Such remuneration is resolved
annually by the Annual General Meeting
and disclosed in Note 29 on pages 126 of
the Annual Report 2021 and the corporate
governance report on pages 44-46 of the
Annual Report 2021.
The group’s overall performance 2021
The CEO summarizes the group’s result
and overall performance in his statement,
which is included on page 8-9 in the Annual
Report 2021.
The company’s remuneration guide-
lines: scope, purpose and deviations
A prerequisite for successful implemen-
tation of the company’s business strategy
and safeguarding of its long-term interests
and sustainability is that the company is
able to recruit, motivate and retain quali-
fied personnel. By enabling the possibility
to oer Senior Executives a competitive
total compensation, the guidelines
contribute to the ability for the company
to, on a long-term basis, retain qualified
personnel.
The total remuneration to Senior Execu-
tives shall be on market terms and consist
of base salary (fixed cash remuneration),
variable cash remuneration, pension
benefits and other benefits. The remuner-
ation, and other employment conditions
for Senior Executives, shall be on market
terms and competitive on every market
where Getinge operates. In addition, the
General Meeting can decide on share- or
share price-related remunerations.
The fixed remuneration (the base
salary) should be based on the individual
executive’s area of responsibility, authority,
competence, experience and performance.
The allocation between base salary and
variable remuneration shall be proportion-
al to the executive’s level of responsibility
and authority. The variable remuneration
shall always be pre-limited to a maximum
amount and connected to pre-determined
and measurable criteria, designed to
contribute to the business strategy, long-
term added value and sustainability of the
company.
The guidelines adopted at the Annual
General Meeting 2021 are available on
pages 81-83 and the proposed revised
guidelines for 2022 are available on pages
83-85 in the Annual Report 2021.
During 2021 the company has complied
with the guidelines adopted at the Annual
General Meeting 2021, save for that Kris-
tian Samuelsson, via company, received
consultancy fees during the financial year
2021 for services provided to the legal ad-
visors representing Getinge subsidiaries
in, maers relating to disputes regarding
claims for surgical mesh implants and
insurance disputes. The consultancy as-
signments were initiated prior to Kristian
Samuelsson’s appointment as a Board
member. To a limited extent, the assign-
ment continued some time aer Kristian
Samuelsson acceded the position as
Board member. For the period aer he ac-
ceded the position as Board member, Kris-
tian Samuelsson via company, during 2021
received consultancy fees amounting to
SEK 106 K. The Board of Directors has, on
the basis of its possibility prescribed by
the guidelines for remuneration to Senior
Executives, resolved on the temporary
deviation from the guidelines as it has
been deemed necessary to serve the com-
pany’s long-term interests and a sustain-
able development of the company, since
Kristian Samuelsson’s expertise has been
necessary and a prerequisite for Getinge
to reach the best possible outcome of
the ongoing disputes regarding claims
for surgical mesh implants and insurance
disputes, and that Kristian Samuelsson
has been involved in the maers already
before he acceded the position as Board
member. In addition to what is mentioned
above, no deviations from the guidelines
nor any derogations from the procedure
for resolution on remuneration, estab-
lished by the remuneration guidelines,
have been made.
The auditors’ statement regarding the
company’s compliance with the guidelines
is available on www.getinge.com/int/
about-us/corporate-governance/gener-
al-meetings under the tab Annual General
Meeting 2022. No paid remuneration has
been reclaimed during 2021.
2021 ANNUAL REPORT
87
Remuneration Report Annual Report
Total remuneration to the CEO during 2021
Remuneration and benefits to CEO in 2021,SEK 000s
Fixed remuneration Variable remuneration
Executive
Base
salary
Other
benefits
1)
Short-term
variable
remuneration
2)
Long-term
variable
remuneration
3)
Pension
expenses
4)
Total
Share of fixed
and variable
remuneration (%)
5)
Maias Perjos, CEO 23,315 3,668 18,652 4,663 9,326 59,624 61/39
1) Other benefits refer to holiday pay, and benefits such as company car, medical insurance (sw: sjukvårdsförsäkring), etc.
2) Short-term variable remuneration refer to bonus accrued during the financial year 2021 and to be paid during 2022.
3) Long-term variable remuneration in the table above refer to accrued amount for a long-term bonus program for the period 2019–2021, which will be paid during 2022.
4) Pension cost for the CEO is based on a defined contribution basis and amounts to 40% of the base salary.
5) The portion of fixed vs variable remuneration as percentage of the grand total remuneration amounted to 61% and 39%, respectively. (The pension cost for the CEO is based on
the fixed base salary and is included in its entirely in the fixed remuneration.)
Share based remuneration
– outstanding share- or share
price related incentive programs
The General Meeting has not resolved on
implementation of any share or share price
related incentive programs.
Synthetic option program issued by
the majority shareholder
During 2018, the Board of Directors of
Getinge AB was informed that the majority
shareholder of the company, Carl Bennet
AB, had issued an incentive program
consisting of synthetic options intended
for the members of the Board of Directors
and Senior Executives of Getinge. In total,
the members of the Board of Directors and
the Senior Executives acquired 3,153,889
synthetic options for a price that was
estimated to correspond to the market
value. At the time for the acquisition, the
aggregated market value of the options
was calculated to approx. SEK 21.8 M.
The synthetic options are related to Get-
inge shares of series B and have a duration
period of four years. The options may be
exercised during the period of March 1,
2022 to May 31, 2022. The redemption price
amounts to SEK 101.50 per option, equiva-
lent to 122% of the average of the, for each
trade day during the period April 27–May 4,
2018 volume-weighted payment price for
Getinge’s B-share at Nasdaq Stockholm. At
exercise of the option, the holder receives
a cash payment from Carl Bennet AB, that
correspond with the number of underlying
shares that the option entitles to multi-
plied by the market value of the share, with
deduction of the redemption price. If the
market value is less than the redemption
price, no payment is received.
Getinge has not participated in the oer,
which has been provided to the members
of the Board of Directors and the Senior
Executives solely by Carl Bennet AB.
The CEO acquired 579,710 synthetic
options.
Aer the end of the financial year, all
synthetic options have been exercised. At
the time of exercise, the market value of
the share aer deduction of the redemp-
tion price amounted to SEK 267.56.
Principles for application
of the performance targets
for variable remuneration
Selection of performance targets and
resolution to determine the variable
remuneration has been prepared by the
Remuneration Commiee and resolved
by the Board of Directors. The variable
remuneration is pre-limited to a maximum
amount and connected to pre-determined
and measurable criteria, designed to
contribute to the business strategy and
long-term added value of the company.
The sustainability work is integrated in the
company’s day-to-day operations. If the
company’s principles for sustainability or
ethical guidelines are not complied with,
the company has the possibility to with-
hold any variable remuneration or reclaim
already paid remuneration.
Aer the end of financial year and based
on a proposal by the Remuneration Com-
miee, the Board of Directors has resolved
to which extent the criteria for payment of
the short- and long-term variable remuner-
ation have been fulfilled. The assessment
if the financial targets have been reached
has been based on the company’s most
recent published financial information,
with any pre-determined adjustments
established by the Board of Directors when
implementing the programs.
Application of the performance
targets for short-term variable
remuneration
The short-term variable remuneration to
the CEO is based on performance targets
established by the Board of Directors
based on the guidelines for remuneration
to Senior Executives and is designed to
promote the interests of the shareholders
and the company’s values, and also to
create incentive for a common strive to
reach the business strategy, long-term
interests and a sustainable development
of the company. The variable short-term
remuneration to the CEO is limited to 80%
of the fixed annual base salary. The targets
for 2021 were connected to result, organic
growth and restriction of working capital.
All three performance targets were fully
achieved in 2021 resulting in maximum
bonus payout.
2021 ANNUAL REPORT
88
Annual Report Remuneration Report
The performance by the CEO during the reported financial year: short term variable cash remuneration
Criteria for determination of short-term variable remuneration for the CEO and outcome, SEK 000s
Executive Performance target
Weighting of
performance target
Outcome of
performance target
Variable remuneration
per performance target
Maias Perjos, CEO
Adjusted EBITA
1)
50% 5,431 Mkr 9,326
Net sales – organic growth 25% 28,376 Mkr
2)
4,663
Tied-up working capital – no. of days 25% 88.2 4,663
18,652
1) The adjusted EBITA refer to the operating profit adjusted for exchange rate changes, acquisitions, divestments, restructuring costs and other material
items affecting comparability.
2) Refers to the Group’s net sales converted into SEK based on last year’s exchange rates.
Applying the performance targets for
the variable long-term remuneration
In addition to base salary and the annual
variable remuneration, the CEO can
receive a variable long-term bonus (LTI-bo-
nus), which rewards clear, measurable
performance targets and is conditioned
by continued employment at the end of
the performance period for the LTI-bonus
(with some customary exceptions). The
criteria for payment of the LTI-bonus shall
be constructed to promote the long-term
interests of Getinge and sustainable
development of the company.
The performance target for all outstanding
LTI-bonus programs are earnings per share,
adjusted in for acquisitions, divestments,
restructuring costs and other material
non-recurrent costs.
By relating the performance target to the
objective of the shareholders, a joint inter-
est to further promote Getinge’s business
strategy and long-term interests is created.
The vesting period for the LTI-bonus is
three financial years. At the end of the
financial year 2021, the LTI-bonus program
2019-2021 expired and during 2022
SEK 4,663 K will be paid to the CEO for this
program.
The performance by the CEO during the reported financial year – long-term variable remuneration
Criteria for determination of long-term variable remuneration for the CEO and outcome, SEK 000s
Executive
Long-term
incentive program (LTI) Performance target
1)
Outcome of
performance
target
Variable
remuneration per
performance target
5)
Maias Perjos, CEO
LTI 2019-2021 Adjusted earnings per share 2019 5.96 kr 3,000
LTI 2019-2021 Adjusted earnings per share 2020
13.19 kr 1,663
LTI 2019-2021 Adjusted earnings per share 2021 12.11 kr –
4,663
2)
LTI 2020-2022 Adjusted earnings per share 2020 13.19 kr 3,639
LTI 2020-2022 Adjusted earnings per share 2021 12.11 kr 300
3,939
3)
LTI 2021-2023 Adjusted earnings per share 2021 12.11 kr 3.847
3.847
4)
1) The performance targets in the Group’s long-term variable remuneration schemes are earnings per share, adjusted for acquisitions, divestments, restructuring costs and
other material non-recurrent costs.
2) Refers to the total provisions for the incentive scheme LTI 2019-2021. The remuneration is vested and will be paid during 2022.
3) Refers to the total provisions for the incentive scheme LTI 2020-2022.
4) Refers to the total provisions for the incentive scheme LTI 2021-2023.
5) At the end of the year, the total provision for long-term bonus to the CEO amounted to SEK 12,449 K, whereof SEK 4,663 K will be paid during 2022. The expense for the long-
term variable remuneration to the CEO for the year amounted to SEK 1,963 K. The vesting period for the group’s long-term incentive scheme is three years and the remu-
neration is conditioned by the CEO remaining at his position at the end of the vesting period. Payment of long-term bonus is during a three-year period limited to one year’s
fixed base salary. In addition, during the year, the Board of Directors has decided to apply one additional limitation on payment of long-term bonus to the CEO, meaning that
payment of short-term and long-term variable remuneration together shall not exceed one year’s base salary. The bonus that has been vested in LTI-2019-2021 but that not can
be paid due to this limitation rule will however be payable in 2023 or later, provided that the payment does not exceed this limitation for the current year.
2021 ANNUAL REPORT
89
Remuneration Report Annual Report
Comparative information regarding the company’s result and changes in the remuneration
Five-year overview of changes in remuneration and performance
1)
2017 compared
with 2016
2018 compared
with 2017
2019 compared
with 2018
2020 compared
with 2019
2021 compared
with 2020 2021
Changes in remuneration to the CEO,
SEK K
2
-43,218 (-63.5 %) 8,710 (35.1 %) 12,483 (37.2 %) 20,663 (44.9 %) -7,082 (-10.6 %) 59,624
Changes in average remuneration to
employees of Getinge AB, SEK K
3
-214 (-15.7 %) 61 (5.3 %) 440 (36.4 %) -34 (-2.1 %) -340 (-21.1 %) 1,274
Changes in operating profit for the
Group, SEK M -13 (-0.9 %) -1,777 (-119.0 %) 2,656 (935.2 %) 2,412 (101.7 %) -413 (-8.6 %) 4,371
1) In the above table, changes of remuneration and result between the years are presented. The changes are presented in both actual amounts and percentage.
2) Remuneration to the CEO relates to the total remuneration to CEO including base salary, short- and long-term incentive program, pension expenses and other benefits.
3) Remuneration to the Senior Executives excluded.
4) Refers to the outcome for year 2021.
Gothenburg, March 2022
The Board of Directors of Getinge AB
2021 ANNUAL REPORT
90
Annual Report Proposed appropriation of profit
Proposed appropriation of profit
Getinge AB (publ), Corp. Reg. No. 556408-5032
The following non-restricted equity in the Parent Company is at the disposal of the Annual General Meeting, SEK M:
Share premium reserve 4,264
Retained earnings 13,277
Net profit for the year 1,600
Total 19,141
The Board and CEO propose that a dividend of SEK 4.00 per share
shall be distributed to shareholders 1,089
to be carried forward 18,052
Total 19,141
The Board of Directors deems the proposed dividend to be justified in relation to requirements that the nature of the business, scope and
risks impose on consolidated equity and the Group’s consolidation requirements, liquidity and financial position.
The Board of Directors and CEO arm that the consolidated financial statements have been prepared in accordance with international
financial reporting standards IFRS, as adopted by the EU, and provide a true and fair view of the Group’s financial position and profit. This
Annual Report was prepared in accordance with generally accepted accounting policies and provides a true and fair view of the Parent
Company’s financial position and profit.
The Administration Report for the Group and Parent Company provides a fair and accurate overview of the performance of the Parent
Company and the Group’s operations, financial position and earnings and describes the material risks and uncertainties faced by the
Parent Company and companies belonging to the Group.
Gothenburg, March 30, 2022
Johan Malmquist
Chairman,
AGM-elected Board member
Carl Bennet
Vice Chairman,
AGM-elected Board member
Johan Bygge
AGM-elected Board member
Barbro Fridén
AGM-elected Board member
Dan Frohm
AGM-elected Board member
Sofia Hasselberg
AGM-elected Board member
Rickard Karlsson
Board member
Representative of the Swedish
Metalworkers’ Union
Åke Larsson
Board member
Representative of the Swedish
Association of Graduate Engineers
Maias Perjos
President & CEO,
AGM-elected Board member
Malin Persson
AGM-elected Board member
Kristian Samuelsson
AGM-elected Board member
Cecilia Daun Wennborg
AGM-elected Board member
Our auditor’s report was submied on March 30, 2022
Öhrlings PricewaterhouseCoopers AB
Peter Nyllinge
Authorized Public Accountant
Auditor in Charge
Karin Olsson
Authorized Public Accountant
2021 ANNUAL REPORT
91
Financial statements Annual Report
Consolidated income statement
SEK M
Note 2021 2020
Net sales 2, 3 2 7, 0 4 9 29, 8 19
Cost of goods sold 4 -13 , 4 6 9 -1 5 , 0 9 7
Gross profit 13, 5 8 0 14 ,7 22
Selling expenses 4 -4, 590 -5,28 5
Administrative expenses 4 -3 ,3 37 -3,498
Research and development costs 4, 34 -8 51 -1 , 0 3 3
Acquisition expenses 4 -35 -8
Restructuring costs 4 -61 -16 9
Other operating income 4 720 1,0 26
Other operating expenses 4 -1, 0 5 6 -97 1
Operating profit (EBIT) 3, 4, 5, 6 4, 371 4, 784
Interest income and other similar income 7 10 8
Interest expenses and other similar expenses 8 -19 3 -307
Profit aer financial items 4 ,1 8 8 4,485
Taxes 9 -1 ,1 8 7 -1 , 2 1 3
Net profit for the year 3,000 3,27 3
Net profit for the year aributable to:
Parent Company's shareholders 2, 97 0 3,239
Non-controlling interests 31 34
Earnings per share, SEK⁾ 10.9 0 11. 8 9
Weighted average number of shares for calculation of earnings per share (000s) 11 272,370 272,370
1) Before and aer dilution.
2021 ANNUAL REPORT
92
Annual Report Financial statements
Consolidated statement of
comprehensive income
SEK M
Note 2021 2020
Net profit for the year 3,000 3,27 3
Other comprehensive income
Items that cannot be restated in profit
Actuarial gains/losses pertaining to defined-benefit pension plans -5 -13
Tax aributable to items that cannot be restated in profit 10 -1
Items that can later be restated in profit
Translation differences and hedging of net investments 6 1,6 14 -2 , 3 1 9
Cash flow hedges 28 -22 -16
Tax aributable to items that can be restated in profit -17 21
Other comprehensive income for the year, net aer tax 1,58 0 -2 , 32 7
Comprehensive income for the year 4,580 946
Comprehensive income for the year aributable to:
Parent Company's shareholders 4,543 936
Non-controlling interests 37 9
2021 ANNUAL REPORT
93
Financial statements Annual Report
Consolidated balance sheet
SEK M
Note 2021 2020
ASSETS
Non-current assets
Intangible assets 3, 12
Tangible assets 3, 12
Right-of-use assets 20
Financial instruments, long-term 28
Financial receivables, long-term 28
Deferred tax assets 9
Total non-current assets
Current assets
Inventories
13
Accounts receivable
14, 28
Contract assets
15
Current tax assets
Financial instruments, current
28
Other receivables
28
Prepaid expenses and accrued income
16
Cash and cash equivalents
19, 28, 33
Total current assets
TOTAL ASSETS
EQUITY AND LIABILITIES
Equity
Share capital 17
Other capital provided
Other reserves
Retained earnings
Equity aributable to the Parent Company's shareholders
Non-controlling interests
Total equity
Long-term liabilities
Interest-bearing long-term liabilities 19, 28
Financial instruments, long-term 28
Other long-term liabilities 28
Provisions for pensions, interest-bearing 19, 24
Provisions for pensions, non-interest-bearing 24
Leasing liabilities, long-term 19, 20, 28
Deferred tax liabilities 9
Restructuring reserves, long-term 21
Other provisions, long-term
22
Total long-term liabilities
Current liabilities
Restructuring reserves, current 21
Other provisions, current 22
Interest-bearing current liabilities 19, 28
Leasing liabilities, current 19, 20, 28
Accounts payable 28
Contract liabilities 23
Current tax liabilities
Financial instruments, current 28
Other liabilities 28
Accrued expenses and deferred income
25
Total current liabilities
TOTAL EQUITY AND LIABILITIES
Refer to Note 26 for information concerning Getinge Group’s pledged assets and contingent liabilities.
2021 ANNUAL REPORT
94
Annual Report Financial statements
Changes in equity for the Group
SEK M
Share
capital
Other
capital
provided Reserves¹⁾
Retained
earnings Total
Non-
controlling
interests
Total
equity
Opening balance at January 1, 2020 13 6 6,78 9 1,965 11, 6 06 20,496 477 20, 973
Comprehensive income for the year – – -2 , 2 8 8 3,225 936 9 946
Dividend – – – -409 -409 -2 4 -433
Closing balance at December 31, 2020 13 6 6,78 9 -32 3 14 ,4 22 21,024 462 21, 486
Opening balance at January 1, 2021 136 6 ,789 -323 14 ,4 2 2 21,0 24 462 21,4 86
Comprehensive income for the year – – 1,56 8 2 , 9 74 4,543 37 4,580
Dividend – – – -8 17 -8 17 -41 -858
Transactions with non-controlling
interests – – – – – -32 -32
Closing balance at December 31, 2021 136 6 ,789 1,245 16 , 579 24 ,750 427 2 5 ,1 76
1) Reserves pertain to cash flow hedges, hedges of net investments and translation differences.
2021 ANNUAL REPORT
95
Financial statements Annual Report
Consolidated cash flow statement
SEK M
Note 2021 2020
Operating activities
Operating profit (EBIT) 4, 37 1 4,7 8 4
Add-back of amortization, depreciation and write-down 1, 814 2,467
Other non-cash items 33 460 60
Add-back of restructuring costs⁾ 61 169
Paid restructuring costs -2 0 3 -26 2
Interest paid and received 33 -1 5 1 -26 0
Other financial items -41 -53
Taxes paid -6 93 -553
Cash flow before changes in working capital 5,618 6 , 352
Changes in working capital
Inventories -7 1 -54 4
Operating receivables 805 1 ,12 1
Operating liabilities 208 270
Cash flow from operating activities 6, 560 7,1 9 9
Investing activities
Acquisition of operations 27 -7 1 5 -999
Investments in intangible assets and tangible assets 12 -930 -1, 0 4 5
Divestment of non-current assets 3 16 53
Cash flow from investing activities -1 , 3 2 9 -1, 9 91
Financing activities
Raising of loans 1 ,17 0 4, 327
Repayment of loans -7, 1 5 9 -3,784
Lease payments -389 -39 0
Change in long-term receivables -1 -17
Dividend paid -858 -433
Cash flow from financing activities -7, 2 3 7 -2 97
Cash flow for the year -2 ,0 0 6 4 , 911
Cash and cash equivalents at the beginning of the year 6,056 1,25 4
Cash flow for the year -2,00 6 4 , 911
Translation differences 26 -1 1 0
Cash and cash equivalents at year-end 33 4, 076 6,05 6
1) Excluding write-downs on fixed assets.
2021 ANNUAL REPORT
96
Annual Report Notes
General information
Getinge AB (publ), which is the Parent Company of Getinge Group,
is a limited liability company with its registered oces in Go-
thenburg, Sweden . A description of the company’s operations is
included in the Administration Report on page 76.
The consolidated financial statements for the fiscal year ending
December 31, 2021 have been approved by the Board on March
30, 2022 and will be presented to the AGM on April 26, 2022 for
adoption.
Accounting and measurement policies
Getinge’s consolidated financial statements have been prepared
in accordance with International Financial Reporting Standards
(IFRS), issued by the International Accounting Standards Board
(IASB), including interpretations issued by the International
Financial Reporting Interpretations Commiee (IFRIC) as adopted
by the EU. In addition, the Swedish Financial Reporting Board’s rec-
ommendation RFR 1 has been applied. The consolidated financial
statements include the financial statements for Getinge AB (publ)
and its subsidiaries and were prepared in accordance with the
cost method. The Parent Company applies the same accounting
policies as the Group, except in the instances stated below in the
section “Parent Company’s accounting policies.” The dierences
that arise between the Parent Company and the Group’s account-
ing policies are aributable to the limited opportunities for the
application of IFRS in the Parent Company, as a result of the Swed-
ish Annual Accounts Act and the Swedish Pension Obligations
Vesting Act. The Parent Company’s functional currency is Swedish
kronor (SEK), which is also the Parent Company’s and Group’s
presentation currency. This means that the financial statements
are presented in Swedish kronor (SEK). Unless otherwise stated,
all amounts are given in millions of Swedish kronor (SEK M). For
practical reasons, the figures in this Annual Report have not been
rounded o, which is why notes and tables may not total correct
amounts.
Significant estimates and assessments
To prepare the financial statements in accordance with IFRS, the
company management is required to make assessments and
assumptions that aect the recognized amounts of assets and
liabilities and other information in the financial statements as well
as the revenues and expenses recognized during the period. As-
sumptions, assessments and estimates are reviewed on a regular
basis. The actual outcome may diverge from these assumptions,
assessments and estimates. The Board of Directors and Getinge
Executive Team have deemed that the following areas may have a
significant impact on Getinge’s earnings and financial position:
Measurement of identifiable assets and liabilities
in connection with acquisitions
In conjunction with acquisitions, all identifiable assets and liabili-
ties in the acquired company are measured at fair value, including
the value of assets and liabilities in the previously owned share as
well as the share aributable to non-controlling interests.
Goodwill and intangible assets with an indefinite useful life
The impairment requirement for goodwill and other intangible
assets with an indefinite useful life is tested annually by Getinge in
accordance with the accounting policy described here in Note 1.
The recoverable amount for cash generating units (CGUs) has been
established through the measurement of value in use. For these
calculations, certain estimations must be made (see Note 12).
Pension commitments
Recognition of the costs of defined-benefit pensions and other
applicable retirement benefits is based on actuarial valuations, re-
lying on key assumptions for discount rates, future salary increas-
es and expected inflation. In turn, the discount rate assumptions
are based on rates for high-quality fixed-interest investments with
durations similar to the pension plans (see Note 24).
Obsolescence reserve
Inventories are recognized at the lower of cost according to the
first in/first out principle, and net realizable value. The value of in-
ventories is adjusted for the estimated decrease in value aribut-
able to products no longer sold, surplus inventories, physical dam-
age, lead times for inventories, and handling and sales overheads.
If the net realizable value is lower than the cost, a valuation reserve
is established for inventory obsolescence (see Note 13).
Deferred tax
The measurement of loss carryforwards and the company’s ability
to utilize unutilized loss carryforwards is based on the company’s
assessments of future taxable income in various tax jurisdictions
and includes assumptions regarding whether expenses that have
not yet been subject to taxation are tax deductible. Deferred tax is
recognized in profit or loss unless the deferred tax is aributable
to items recognized in other comprehensive income, in which case
the deferred tax is recognized together with the underlying trans-
action in other comprehensive income (refer to Note 9).
Capitalized product development costs
Costs for product development projects are capitalized to the ex-
tent that the costs can be expected to generate financial benefits.
Capitalization starts when management believes that the product
will be technically or financially viable. This means that established
criteria must be met before a development project is capitalized
as an intangible asset. Capitalization ends and amortization of
the capitalized development costs starts when the asset is ready
for use. Capitalized development costs are tested for impairment
when there are indications of a decline in value. Determining the
amortization period and testing for impairment require manage-
ment to make assessments.
NOTE
1
Accounting policies
2021 ANNUAL REPORT
97
Notes Annual Report
Disputes
Provisions for disputes represent management’s best estimate of
the future cash flow required to sele the obligations. The disputes
primarily relate to contractual commitments in contracts with
customers and suppliers and damages related to product liability.
Management’s assessment is that the need to make provisions
depends on the legal processes in the country in question and the
course of the proceedings. Opinions from external and internal
advisors are taken into consideration, as is experience from similar
cases. The results of complicated disputes may nevertheless be
dicult to predict and disputes could be both time-consuming
and costly (see Note 22).
Consolidated financial statements
Subsidiaries are all companies (including structured entities) over
which the Group exercises a controlling influence. The Group con-
trols a company when it is exposed to or has the right to variability
of returns from its holding in the company and can aect these
returns through its influence over the company. The controlling
influence is usually transferred at the acquisition date. Acquired
companies are consolidated into the consolidated financial state-
ments in accordance with the purchase method, which means
that the cost of the shares in subsidiaries is eliminated against
their equity at the acquisition date. Accordingly, only the portion
of the subsidiary’s equity that has arisen aer the acquisition is in-
cluded in consolidated equity. Equity in the subsidiaries is thus de-
termined on a market-based value of identifiable assets, liabilities,
provisions and contingent liabilities on the date of the acquisition.
If the cost of the shares in the subsidiaries exceeds the value of the
acquired net assets, calculated as described above, the dierence
is assigned to goodwill. If the acquisition cost falls below the fair
value of the acquired subsidiary’s net assets (a bargain purchase),
the dierence is recognized directly in profit or loss as other oper-
ating income. If assets are included in the subsidiary at the time of
acquisition – for example, property, participations or other oper-
ations – that will not be retained but sold in the near future, these
assets are recognized in the acquisition analysis at the amount ex-
pected to be received. Deferred tax is calculated on the dierence
between the calculated market values of assets and liabilities and
the fiscal residual values. Intra-Group transactions and unrealized
inter-company profits are eliminated in the consolidated financial
statements, without respect of shares in non-controlling interests.
In profit or loss, net profit is recognized without deductions for
non-controlling interests in net profit for the year. Non-controlling
interests are recognized as a separate item in consolidated equity
in the balance sheet. The Group applies revised IFRS 3 Business
Combinations to all acquisitions made aer January 1, 2010,
whereby the most significant change entails expensing transac-
tion costs in conjunction with an acquisition.
Foreign currencies
Functional currency
Transactions in foreign currencies are translated to the functional
currency of the financial statements according to the exchange
rate on the date of the transaction. Receivables and liabilities
in foreign currencies are measured at the closing day rate, and
unrealized currency gains and losses are included in profit or loss.
Exchange-rate dierences aributable to operating receivables
and liabilities are recognized as other operating income/operating
expenses. Exchange-rate dierences regarding financial assets
and liabilities are recognized under Other financial items. When
preparing the consolidated financial statements, the balance
sheets of the foreign operations are translated from their function-
al currency to SEK, based on the closing day rate.
Translation of foreign operations
Getinge applies the current method for translation of foreign
subsidiaries’ balance sheets and income statements. This means
that all assets and liabilities in subsidiaries are translated at the
closing day rate, and all income statement items are translated
at average annual exchange rates. Translation dierences arising
in this context are due to the dierence between the income
statement’s average exchange rates and closing day rates, and
to the net assets being translated at a dierent exchange rate at
year-end than at the beginning of the year. Translation dierences
are recognized under other comprehensive income. The total
translation dierences in conjunction with divestments are recog-
nized together with the gains/losses arising from the transaction.
Hedge accounting is applied to external loans raised in order to
reduce translation eects in exposed currencies to match the net
assets in foreign subsidiaries. Exchange-rate dierences for these
loans are recognized directly in other comprehensive income for
the Group.
Revenue recognition
Sales include products, services and rental, net aer discounts, ex-
cluding indirect sales tax. Revenue is mainly recognized when the
buyer passes control of the sold product or service and is able to
use or benefit from the product or service. Getinge’s overall perfor-
mance obligations can be divided into products and services. Rev-
enue recognition of sales of products usually takes place at a point
in time when the goods are delivered and when collection of the
receivable is reasonably assured. Revenue is normally recognized
once the buyer has accepted delivery and aer installation and
final inspection. Revenue from services is recognized over time
when the services are performed. Income from rental is allocated
to a particular period over the term of the rental agreement.
Interest income is recognized continuously and dividends
received are recognized aer the right to the dividend is deemed
secure. In the consolidated financial statements, intra-Group
2021 ANNUAL REPORT
98
Annual Report Notes
sales are eliminated. For larger assignments that meet the criteria
for revenue recognition over time, revenue and expenses are rec-
ognized in relation to the degree of completion of the assignment
on the closing date. The degree of completion of an assignment is
established in a ratio between accrued assignment costs for work
completed on the closing date and the calculated total assign-
ment costs, except in those instances this does not correspond
to the degree of completion. Changes in the scope and claims of
the assignment are included only if there is an agreement with
the customer. When the outcome of an assignment cannot be
calculated in a reliable manner, only the amount corresponding
to the accrued assignment costs that will probably be paid by the
client is recognized as revenue. Other accrued assignment costs
are recognized as costs in the period in which they occur. If it is
probable that the total amount of accrued assignment costs will
exceed total revenue from the assignment, the expected loss is
promptly recognized as a cost in its entirety.
Government grants
Government grants are measured at fair value when it is probable
that the terms associated with the grants will be met and that the
grants will be received. Government grants that apply to costs
are recognized in profit or loss as a reduction in costs in the same
period as the costs that the grants are intended to cover. If the
grants received do not pertain to a specific cost, the grants are
recognized as revenue under the item other operating income.
Government grants relating to the acquisition of assets reduce the
assets’ carrying amounts. Such grants aect recognized earnings
over the asset’s useful life by reducing depreciation (see Note 35).
Financial income and expenses
Financial income and expenses include interest income on bank
deposits and receivables, interest expenses on loans, income from
dividends, unrealized and realized profits and losses on financial
investments, exchange-rate dierences, and the change in value of
derivative instruments used in financial activities. Borrowing costs
in conjunction with the raising of loans are recognized as part of
the loan to which they pertain and are charged to profit during the
term of the loan.
Discontinued operations
A discontinued operation is part of a company that has been
divested, distributed to the shareholders or is classified as held for
sale and that comprises a material, independent segment or an
operation conducted in a geographic area. Profit from discontinued
operations are recognized separately from continuing operations
in profit or loss.
Intangible assets
Goodwill
Goodwill comprises the portion of a purchase price for an acqui-
sition that exceeds the market value of the identifiable assets,
with deductions for liabilities and contingent liabilities, calculated
on the acquisition date, on the share of the acquired company’s
assets acquired by the Group. In a business acquisition where-
by the acquisition costs are less than the net value of acquired
assets, assumed liabilities and contingent liabilities, the dierence
is recognized directly in profit or loss. Goodwill arising in conjunc-
tion with the acquisition of a foreign entity is treated as an asset
in the foreign entity and translated at the exchange rate on the
closing date. Goodwill arising from the acquisition of associated
companies is included in the value of the holdings in the associat-
ed company. An impairment test of goodwill is conducted once per
year or more oen if there is an indication that there could have
been a decrease in value. Impairment of goodwill is recognized in
profit or loss. The gain or loss in connection with the divestment
of an entity includes the residual carrying amount of goodwill that
pertains to the divested unit.
Other intangible assets
Other intangible assets comprise capitalized development costs,
customer relations, technical know-how, trademarks, agreements
and other assets. Intangible assets are recognized at cost with
deductions for accumulated amortization and any impairment
losses. Amortization is applied proportionally over the asset’s
anticipated useful life, which usually varies between three and 15
years. Acquired intangible assets are recognized separately from
goodwill if they fulfill the criteria for qualifying as an asset, implying
they can be separated or they are based on contractual or other
legal rights and that their market value can be established in a reli-
able manner. Intangible assets that are recognized separately from
goodwill in acquisitions of operations include customer relations,
technical know-how, trademarks, agreements, etc.
Acquired intangible assets are measured at market value and
amortized on a straight-line basis over their anticipated useful life.
The useful life can, in certain cases, be indefinite. These intangible
assets are not amortized, instead they are tested for impairment
every year or more oen if there is an indication that there could
have been a decrease in value. Costs for development, whereby
research results or other knowledge is applied to produce new
products, are recognized as an asset in the balance sheet to
the extent that these products are expected to generate future
financial benefits. These costs are capitalized when management
deems that the product is technically and financially viable, which
is usually when a product development project has reached a
defined milestone in accordance with an established project
model. The capitalized value includes expenses for material, direct
expenses for salaries and indirect expenses that can be assigned
to the asset in a reasonable and consistent manner. In other cas-
es, development costs are expensed as they arise. Research costs
are charged to earnings as they arise. Capitalized expenses are
amortized on a straight-line basis from the point in time at which
the asset is put into commercial operation and during the asset’s
estimated useful life. The amortization period is determined based
2021 ANNUAL REPORT
99
Notes Annual Report
on historical data and taking into consideration future changes in
technology. For capitalized development costs, the amortization
period is five to 15 years and for soware three years.
Tangible assets
Properties, machinery, equipment and other tangible assets are
recognized at cost, with deductions for accumulated deprecia-
tion and any impairment losses. The cost includes the purchase
price and expenses directly aributable to the asset to bring the
asset to the site and in the working condition for its intended use.
Examples of directly aributable expenses included in the cost are
delivery and handling costs, installation, legal services and con-
sultancy services. Assets provided to the company in conjunction
with the acquisition of new subsidiaries are recognized at market
value on the acquisition date. Depreciation is conducted straight
line. The value in the balance sheet represents acquisition costs
with deduction for accumulated depreciation and any impairment
losses. Land is not depreciated since it is deemed to have an
infinite economic life, however, the depreciation of other assets is
based on the following anticipated useful lives:
Class of assets
Depreciation,
number of years
Land 40–50
Buildings 10–50
Machinery 5–25
Equipment 10
Production tools 5
Rental equipment 5
Cars 4
Computer equipment 3
Tangible assets comprising parts with dierent useful lives are
treated as separate components of tangible assets. Standard
maintenance and repair costs are expensed during the periods in
which they arise. More extensive repair and upgrading costs are
capitalized and depreciated over the item’s remaining anticipated
useful life. Capital gains/losses are recognized under Other operat-
ing income/expenses.
Leasing – Getinge as a lessee
The Group’s leases mainly comprise right-of-use assets for premis-
es and vehicles. The leases are recognized as a right-of-use asset
with a corresponding lease liability when the leased asset is avail-
able for use by the Group. Short-term leases and leases for which
the underlying asset is of low value are exempted. Each lease
payment should be divided between amortization of the lease
liability and a financial cost. The financial cost should be allocated
over the lease term, so that each reporting period is charged with
an amount corresponding to a fixed interest rate for the liability
recognized under each period.
The Groups lease liabilities are recognized at the present
value of the Group’s fixed lease payments. Purchase options are
included if it is reasonably certain that Getinge will exercise the
option to acquire the underlying asset. Penalties for terminating
the lease are included if the lease term reflects that the lessee
will exercise an option to cancel the lease. Lease payments are
discounted with the interest rate implicit in the lease, if this rate
can easily be determined. Otherwise, the Group’s incremental
borrowing rate is applied.
The Group’s right-of-use assets are recognized at cost, and
include initial present value of the lease liability, adjusted for lease
payments made at or before the commencement date and any
initial direct expenses. Restoration costs are included in the asset
if a corresponding provision for restoration costs exists. The right-
to-use asset is depreciated on a straight-line basis over the assets
useful life and the lease term, whichever is the shortest.
Leasing – Getinge as a lessor
Leases in which Getinge is the lessor are defined in two categories,
operating and finance, depending on the financial significance of
the agreement. Operating leases are recognized as non-current
assets. Revenue from operating leases is recognized evenly over
the lease term. Straight-line depreciation is applied to these assets
in accordance with the undertakings and the depreciation amount
is adjusted to correspond with the estimated realizable value when
the undertaking expires. The estimated impairment requirement
is immediately charged to profit or loss. The products’ estimated
realizable value at the expiration of the undertaking is continuous-
ly followed up on an individual basis. Finance leases are recognized
as long-term and current receivables. Payments received from
finance leases are divided between interest income and deprecia-
tion of receivables.
Impairment of non-financial assets
At the end of each accounting period, the carrying amount of the
assets is assessed to determine whether there is any indication
that impairment is required. If there is such an indication, the as-
set’s recoverable amount is established. The recoverable amount
is deemed to be the higher of the asset’s net realizable value and
its value in use, for which the impairment loss is recognized as
soon as the carrying amount exceeds the recoverable amount.
Earlier recognized impairment losses on intangible assets and tan-
gible assets are reversed if the recoverable amount is deemed to
have increased, although the impairment losses are not reversed
to an amount greater than what the carrying amount would have
been if no impairment losses had been recognized in earlier years.
Recognized impairments of goodwill are not reversed.
Inventories
Inventories are measured at the lower of cost and production val-
ue, according to the first in/first out (FIFO) principle, and net realiz-
able value. Inventories include a share of indirect costs related to
2021 ANNUAL REPORT
100
Annual Report Notes
this. The value of finished products includes raw materials, direct
work, other direct costs and production-related expenses includ-
ing depreciation. The net realizable value is calculated as the esti-
mated sales price less estimated completion and selling expenses.
An assessment of obsolescence in inventories is conducted on an
ongoing basis during the year. The value of inventories is adjusted
for the estimated decrease in value aributable to products no
longer sold, surplus inventories, physical damage, lead times for
inventories, and handling and sales overheads. If the net realizable
value is lower than the cost, a valuation reserve is established for
inventory obsolescence.
Financial instruments
Initial recognition
Financial assets and financial liabilities are recognized when the
Group becomes party to the contractual terms of the instrument.
Purchases and sales of financial assets are recognized on the
transaction date, which is the date on which the Group undertakes
to buy or sell the asset. A financial asset is derecognized from
the balance sheet when the contractual rights to the asset are
realized, extinguished or the company loses control over them. A
financial liability is derecognized from the balance sheet when the
contractual obligation has been fulfilled or in some other manner
extinguished. Financial instruments are initially measured at fair
value plus transaction costs that are directly aributable to the
acquisition or issue of a financial asset or financial liability. The
Group classified its financial assets and liabilities depending on
the purpose for which the financial asset or liability was acquired.
Financial assets measured at amortized cost
Assets held for the purpose of collecting the contractual cash
flows that are solely payments of principal and interest on the
principal amount are measured at amortized cost. Assets in this
category are initially measured at fair value including transaction
costs. Aer the acquisition date, they are recognized at amortized
cost using the eective interest method. The carrying amount of
the assets is adjusted for any impairment for expected credit loss-
es. Interest income from these financial assets is recognized using
the eective interest method and is included in financial income.
Assets in this category comprise long-term financial receivables,
accounts receivable and other current receivables. They are
included in current assets with the exception of items that fall due
more than 12 months aer the end of the reporting period, which
are classified as non-current assets.
Impairment of financial assets measured at amortized cost
The Group assesses the future expected credit losses related to
assets measured at amortized cost and recognizes a reserve for
such credit losses (“loss allowance”) on each reporting date. For
accounts receivable, the Group applies the simplified approach
for loss allowance, meaning that the reserve will correspond to the
expected loss for the full lifetime of the receivable. Expected credit
losses on accounts receivable are recognized under the item
selling expenses in profit or loss.
Financial liabilities measured at amortized cost
The Group’s other financial liabilities are initially measured at fair
value, net aer transaction costs. Other financial liabilities are
subsequently measured at amortized cost using the eective in-
terest method. Long-term liabilities have an expected term longer
than one year while current liabilities have a term of less than 12
months. This category includes liabilities to credit institutions,
issued bonds, accounts payable and other current liabilities.
Cash and cash equivalents
The major portion of cash and cash equivalents comprises cash
funds held at financial institutions, and only a minor portion com-
prises current liquid investments with a term from the acquisition
date of less than three months, which are exposed to only an insig-
nificant risk of value fluctuations. Cash and cash equivalents are
recognized at nominal amounts, which are equivalent to fair value.
Financial assets measured at fair value
Financial assets in this category comprise derivatives. They are in-
cluded in current assets if they are expected to be seled within 12
months of the end of the reporting period, otherwise, they are clas-
sified as non-current assets. All derivatives are measured at fair
value in the balance sheet. Changes in fair value are recognized as
a component of other comprehensive income insofar as they are
part of a hedging relationship that qualifies as hedge accounting.
They are reversed to profit or loss when the hedged transaction
occurs. Derivatives that do not meet the requirements for hedge
accounting are measured at fair value through profit or loss.
Hedge accounting
For derivative instruments or other financial instruments that
meet hedge accounting requirements under the cash flow hedging
method or hedging of net investments in foreign operations meth-
od, the eective component of the value change is recognized in
other comprehensive income. Accumulated value changes from
cash flow hedges are reversed from equity to profit or loss at the
same time as the hedged item impacts profit or loss. Accumulated
value changes from the hedging of net investments in foreign op-
erations are reversed from equity to profit or loss when the foreign
operation is divested in full or in part. Interest-bearing liabilities to
which hedge accounting has been applied in accordance with the
method for fair-value hedging are measured at fair value regarding
the hedged risk. The eect of the hedge is recognized on the same
line as the hedged item.
2021 ANNUAL REPORT
101
Notes Annual Report
Fair value
The fair value of derivative instruments was calculated using the
most reliable market prices available. This requires all instruments
that are traded in an eective market, such as currency forward
contracts, to be measured at market-to-market at current prices.
In terms of instruments for which no reliable prices were available,
such as interest-rate swaps, cash flows were discounted using
deposit and interest-rate swaps for the currency in question.
Translation to SEK is conducted at the closing day rate.
Remuneration to employees
Recognition of pensions
Getinge has both defined-contribution and defined-benefit pen-
sion plans, of which some have assets in special funds or similar
securities. The plans are usually financed by payments from the
respective Group companies and the employees. The Group’s
Swedish companies are generally covered by the ITP plan, which
does not require any payments from employees.
Defined-benefit plans
Pension expenses for defined-benefit plans are calculated using
the Projected Unit Credit Method in a manner that distributes
expenses over the employee’s working life. The calculation is per-
formed annually by independent actuaries. These commitments
are measured at the present value of expected future payments,
with consideration given to calculated future salary increases,
and utilizing a discount rate corresponding to the interest rate
of first-class company or government bonds with a remaining
term that is almost equivalent to the actual commitments. The
Group’s net liabilities for each defined-benefit plan (which is also
recognized in the balance sheet), comprises the present value
of the obligation less the fair value of the plan assets. If the value
of the plan assets exceeds the value of the obligation, a surplus
arises, which is recognized as an asset. The recognized asset value
is limited to the total of costs related to services rendered during
previous periods and the present value of future repayments from
the plan, or reductions in future contributions to the plan. The
actuarial assumptions constitute the company’s best assessment
of the dierent variables that determine the costs of providing the
benefits. When actuarial assumptions are used, the actual results
could dier from the estimated results, and actuarial assumptions
change from one period to another. These dierences are recog-
nized as actuarial gains and losses. Actuarial gains and losses are
recognized in other comprehensive income for the period in which
they are incurred.
Costs for defined-benefit pension plans in profit or loss com-
prise the total costs for service during the current and earlier
years, interest on commitments and the expected return on plan
assets. Costs for service during the current period and previous
periods are recognized as employee costs. The interest compo-
nent of pension expenses is recognized under financial expenses.
Defined-contribution plans
These are plans in which the company pays fixed fees to a separate
legal entity and does not have any legal or informal obligation to
pay additional fees. The Group’s payments for defined-contribution
plans are recognized as expenses during the period in which the
employees perform the services that the fee covers. The part of
the Swedish ITP plan concerning family pension, disability pension,
and employment group life insurance financed by insurance with
Alecta is a defined-benefit pension multi-employer plan. For this
pension scheme, according to IAS 19, a company is primarily to
recognize its proportionate share of the defined-benefit pension
commitment and the plan assets and expenses associated with
the pension plan. The financial statements are also to include
disclosure required for defined-benefit pension plans. Alecta is
currently unable to provide the necessary information and there-
fore the above pension plans are recognized as defined-contribu-
tion plans in accordance with item 30 of IAS 19. This means that
premiums paid to Alecta will also be recognized on an ongoing
basis as expenses in the period to which they pertain.
Share-based remuneration
There were no share-based incentive programs in the Group at the
end of 2021.
Provisions
Provisions are recognized when the Group has a legal or informal
obligation as a result of past events and it is probable that payment
will be required to fulfill the commitment and if a reliable estima-
tion can be made of the amount to be paid. Pensions, deferred tax
liabilities, restructuring measures, guarantee commitments and
similar items are recognized as provisions in the balance sheet.
Provisions are reviewed at the end of each accounting period.
Contingent liabilities
Contingent liabilities are commitments not recognized as liabili-
ties/provisions either because it is not certain that an outflow of
resources will be required to sele the commitment or because it
is not possible to make a reliable estimate of the amount.
Income taxes
Getinge’s income taxes include taxes on Group companies’ profits
recognized during the accounting period and tax adjustments
aributable to earlier periods and changes in deferred taxes. Mea-
surement of all tax liabilities/receivables is conducted at nominal
amounts and in accordance with enacted tax regulations and tax
rates or those that have been announced and will almost certainly
2021 ANNUAL REPORT
102
Annual Report Notes
be adopted. Tax is recognized directly in equity if the tax is arib-
utable to items that are recognized directly in equity. Deferred tax
is calculated to correspond to the tax eect arising when final tax
is determined. Deferred tax corresponds to the net eect of tax
on all existing dierences between fiscal and carrying amounts of
assets and liabilities by applying applicable tax rates. Temporary
dierences primarily arise from the depreciation of properties,
machines and equipment, the market valuations of identifiable
assets, liabilities and contingent liabilities in acquired companies,
the market valuation of investments classified as available-for-sale
and financial derivatives, gains from intra-Group inventory trans-
actions, untaxed reserves and tax loss carryforwards, of which the
laer is recognized as an asset only to the extent that it is probable
that these loss carryforwards will be matched by future taxable
profits. Deferred tax liabilities pertaining to temporary dierences
that are aributable to investments in subsidiaries and aliates
are not recognized, since the Parent Company, in each instance,
can control the point in time of reversal of the temporary dier-
ences and a reversal in the foreseeable future has been deemed
improbable.
Segment reporting
Getinge’s reporting of operating segments is in line with the inter-
nal reporting to the CEO, identified as the chief operating decision
maker. The Group’s operations are controlled and reported primari-
ly by business area. Each segment is consolidated according to the
same policies as for the Group in its entirety. The earnings of the
segments represent their contribution to the Group’s earnings. As-
sets in a segment include all operating assets used by the segment
and primarily comprise intangible assets, tangible assets, invento-
ries, external accounts receivable, other receivables and prepaid
expenses and accrued income. Liabilities in a segment include all
operating liabilities utilized by the segment and primarily comprise
provisions excluding interest-bearing pension provisions and
deferred tax liabilities, external accounts payable, other current
liabilities and accrued expenses and deferred income. Non-distrib-
uted assets and liabilities include all tax items and all items of a
financial interest-bearing nature.
Cash flow statements
Cash flow statements are prepared in accordance with IAS 7
Statement of Cash Flows, indirect method. Changes in the Group
structure, acquisitions and divestments are recognized net, ex-
cluding cash and cash equivalents, under acquired operations and
divested operations, and are included in cash flow from investing
activities.
Earnings per share
Earnings per share before dilution are calculated by dividing net
profit for the year aributable to the Parent Company’s sharehold-
ers by the weighted average number of shares outstanding during
the period.
Dividend
Dividends proposed by the Board of Directors are not deducted
from distributable earnings until the dividend has been approved
by the Annual General Meeting (AGM).
Alternative performance measures
In the Annual Report, alternative performance measures are used
to facilitate analyses of the Group’s operations, and the primary al-
ternative performance measures that are presented are net debt/
equity ratio, gross profit, EBIT, EBITA, EBITDA with add-back of
acquisition and restructuring costs as well as other items aecting
comparability. For reconciliations of the alternative performance
measures and definitions, see pages 154-155 and 160-161.
New accounting policies
applied by the Group in 2021
No standards, amendments or interpretations eective from fiscal
years beginning on or aer January 1, 2021 had a material impact
on the consolidated financial statements.
New and amended standards and
interpretations that have not yet come into effect
No new standards or interpretations that come into eect aer
December 31, 2021 are expected to have any material impact on
the consolidated financial statements.
2021 ANNUAL REPORT
103
Notes Annual Report
SEK M 2021 2020
Capital goods 12,261 15,473
Consumables
Product sales 10,031 9,551
Service assignments incl. spare parts 4,757 4,795
Total consumables 14,787 14,346
Total 27,049 29,819
The segment reporting has been prepared in accordance with the
same policies as for the Group in its entirety. Getinge’s operations
throughout the world are organized into three business areas –
Acute Care Therapies, Life Science and Surgical Workflows. These
business areas form the basis for the Group’s segment information.
Business terms and conditions as well as market-regulated pricing
apply for delivery of products and services between Group compa-
nies. No sales are made between the dierent business areas. The
Group has no single customer that accounts for 10% or more of the
Group’s sales.
The reporting segments are active
in the following operations
Acute Care Therapies: Acute Care Therapies oers solutions for
life support in acute health conditions. The oering includes solu-
tions for cardiac, pulmonary and vascular therapies and a broad
selection of products and therapies for intensive care.
Life Science: Life Science oers a comprehensive range of equip-
ment, technical expertise and consultation to prevent contam-
ination in biopharmaceutical production, biomedical research,
medical device manufacturing and laboratory applications.
Surgical Workflows: Surgical Workflows oers products and
services for ecient disinfection and sterilization of instruments
used in operations, operating tables and other high-quality hard-
ware for operating rooms and advanced IT systems for ecient
and secure hospital workflows.
SEK M
Net sales Adjusted EBITA
Operating profit
(EBIT)
Amortization,
depreciation
and write-downs
2021 2020 2021 2020 2021 2020 2021 2020
Acute Care Therapies 15,527 18,719 4,444 5,831 3 685 5,312 -1,057 -1,529
Life Science 3,558 2,854 729 393 702 337 -166 -183
Surgical Workflows 7,965 8,246 390 -127 369 -489 -578 -744
Group functions – – -351 -374 -386 -375 -13 -11
Total 27,049 29,819 5,212 5,724 4,371 4,784 -1,814 -2,467
Interest income and
other similar income 10 8
Interest expenses and
other similar expenses -193 -307
Tax on profit for the year -1,187 -1,213
Net profit 3,000 3,273
SEK M
Assets Liabilities Investments
2021 2020 2021 2020 2021 2020
Acute Care Therapies 28,909 28,495 7,242 6,728 708 804
Life Science 2,881 2,294 1,125 682 57 58
Surgical Workflows 7,473 6,643 2,402 1,709 165 180
Total business areas 39,263 37,432 10,769 9,119 930 1,042
Undistributed 5,292 7,582 8,610 14,409 – 3
Total 44,555 45,014 19,379 23,528 930 1,045
NOTE
2
Net sales per revenue classification
NOTE
3
Segment reporting
2021 ANNUAL REPORT
104
Annual Report Notes
NOTE
4
Costs by cost category
Costs by cost category, SEK M 2021 2020
Salaries and remuneration -7,975 -8,281
Social security expenses -1,168 -1,340
Pension expenses -415 -421
Amortization and write-downs of intangible assets -933 -1,562
Depreciation and write-downs of tangible assets -483 -500
Depreciation and write-down of right-of-use assets -398 -405
Goods and services -10,971 -12,581
Other operating income 720 1,026
Other operating expenses -1,056 -971
Total -22,679 -25,035
SEK M
Net sales
Intangible assets, tangible assets
and right-of-use assets
2021 2020 2021 2020
EMEA 10,167 12,096 10,805 10,872
of which, Sweden 492 804 2,113 2,205
Americas 10,249 11,394 16,603 14,370
APAC 6,632 6,329 860 815
Total 27,049 29,819 28,268 26,058
Net sales per business area and region, 2021
SEK M Acute Care Therapies Life Science Surgical Workflows Total
EMEA 4,661 1,547 3,959 10,167
Americas 7,105 1,319 1,825 10,249
APAC 3,760 692 2,180 6,632
Total 15,527 3,558 7,965 27,049
Net sales per business area and region, 2020
SEK M Acute Care Therapies Life Science Surgical Workflows Total
EMEA 6,566 1,278 4,253 12,096
Americas 8,431 1,103 1,860 11,394
APAC 3,722 473 2,133 6,329
Total 18,719 2,854 8,246 29,819
Net sales per business area and revenue type, 2021
SEK M Acute Care Therapies Life Science Surgical Workflows Total
Capital goods 5,090 2,696 4,475 12,261
Consumables 10,437 861 3,489 14,787
Total 15,527 3,558 7,965 27,049
Net sales per business area and revenue type, 2020
SEK M Acute Care Therapies Life Science Surgical Workflows Total
Capital goods 8,593 2,029 4,851 15,473
Consumables 10,126 825 3,394 14,346
Total 18,719 2,854 8,246 29,819
Getinge’s operations are secondarily reported by geographic area.
The US accounted for 33% (33) of the Group’s sales and was the
only country that accounted for more than 10% of total sales.
Refer also to page 152 for a list of the Group’s 20 largest markets.
The geographic areas’ consolidation is conducted in accordance
with the same policies as for the Group in its entirety.
2021 ANNUAL REPORT
105
Notes Annual Report
NOTE
5
Auditing
Fee to PwC, SEK M 2021 2020
Auditing assignment -29 -33
Auditing activities other than auditing assignments -1 -2
Tax consultancy services -2 -2
Other services -10 -1
Total -42 -38
Total fees to PwC and its international network amounted to
SEK 42 M (38) for the 2021 fiscal year. Fee to the Swedish auditing
firm Öhrlings PricewaterhouseCoopers AB amounted to SEK 13 M
(18), of which SEK 10 M (17) refers to the auditing assignment,
SEK 0 M (0) to other statutory assignments and other auditing
assignment and SEK 3 M (1) to tax consultancy and other services.
PwC has the auditing assignment for the entire Group. Auditing
assignments refer to auditing of the financial statements and
statutory accounts and other required legal audit.
Auditing activities other than auditing assignments include
mainly the review of interim reports, services in conjunction with
the issuance of certificates and audit certificates as well as other
services related to financial reporting. Tax consultancy services
primarily pertain to general tax maers concerning corporate tax
and internal pricing. Other services mainly pertain to services in
connection with acquisitions.
Amortization, depreciation and write-downs, SEK M 2021 2020
Cost of goods sold -813 -1,017
Selling expenses -513 -754
Administrative expenses -442 -433
Research and development costs -47 -263
Total -1,814 -2,467
Other operating income, SEK M 2021 2020
Currency gains 470 735
Capital gains 93 6
Other
1)
156 285
Total 720 1,026
1) Other operating income 2020 includes a reversal of unutilized provision of SEK 183 M.
Other operating expenses, SEK M 2021 2020
Currency losses -352 -804
Capital losses -11 -32
Other
2)
-692 -135
Total -1,056 -971
2) Other operating expenses 2021 includes a provision related to surgical mesh implants of SEK -601 M (for more information see Note 22).
2021 ANNUAL REPORT
106
Annual Report Notes
Taxes, SEK M 2021 2020
Current tax -834 -733
Deferred tax -353 -480
Total -1,187 -1,213
The relationship between the year’s tax expense and the recognized profit before tax, SEK M 2021 2020
Recognized profit before tax 4,188 4,485
Tax according to current tax rate in Sweden -863 -960
Adjustment for tax rates in foreign subsidiaries -207 -111
Adjustment of tax expenses from earlier years -28 -9
Adjustment for changed tax rates 0 0
Changed value of temporary differences – 2
Other tax effects -89 -135
Recognized tax expense -1,187 -1,213
1) Mainly refers to US BEAT-tax, foreign withholding tax and tax effects of non-deductible costs.
NOTE
9
Taxes
The Group’s tax expense amounted to SEK -1,187 M (-1,213), entailing a tax rate of 28% (27).
NOTE
6
Exchange-rate gains and losses, net
Exchange-rate differences were recognized in profit or loss within, SEK M 2021 2020
Other operating income and expenses 119 -68
Financial items 0 -11
Total 119 -79
Exchange-rate differences in other comprehensive income refers to, SEK M 2021 2020
Translation differences 1,508 -2,232
Hedging of net investments 106 -87
Total 1,614 -2,319
NOTE
7
Interest income and other similar income
SEK M 2021 2020
Interest income 10 5
Currency gains 0 2
Other 0 1
Total 10 8
NOTE
8
Interest expenses and other similar expenses
SEK M 2021 2020
Interest expenses -152 -251
Currency losses 0 -13
Other -41 -43
Total -193 -307
2021 ANNUAL REPORT
107
Notes Annual Report
Earnings per share, before and aer dilution, amounted to SEK 10.90 (11.89).
The calculation of earnings per share relating to the Parent Company’s shareholders is based on the following information:
Earnings (numerator), SEK M 2021 2020
Earnings relating to the Parent Company's shareholders,
which form the basis for calculation of earnings per share 2,970 3,239
Number of shares (denominator) 2021 2020
Weighted average number of ordinary shares for calculation of earnings per share 272,369,573 272,369,573
Deferred tax assets relate to the following temporary differences and loss carryforwards, SEK M 2021 2020
Deferred tax assets relating to:
Non-current assets 56 74
Financial receivables and derivatives 25 2
Current assets 385 430
Provisions 1,163 986
Loss carryforwards 659 906
Other 378 315
Offset -1,500 -1,239
Deferred tax assets 1,166 1,474
Deferred tax liabilities relate to the following temporary differences, SEK M 2021 2020
Deferred tax liabilities relating to:
Non-current assets -1,840 -1,523
Current assets -45 -24
Provisions 0 0
Other -512 -521
Offset 1,500 1,239
Deferred tax liabilities -897 -829
Maturity structure for loss carryforwards, SEK M 2021 2020
Due within 1 year – –
Due within 2 years – 14
Due within 3 years – –
Due within 4 years 5 4
Due within 5 years 2 101
Due aer 5 years – –
No due date 3,209 4,272
Total 3,216 4,391
At year-end 2021, there were unrecognized deferred tax assets pertaining to loss carryforwards and unutilized interest deductions
amounting to SEK 72 M (61).
NOTE
10
Dividend
On April 27, 2021, shareholders were paid a dividend of SEK 3.00 per
share (SEK 817 M in total) relating to 2020.
The Board and the CEO propose to the Annual General Meeting
that a dividend of SEK 4.00 per share be paid to shareholders,
which amounts to SEK 1,089 M. The proposed record date is April
28, 2022. Euroclear is expected to distribute the dividend to share-
holders on May 3, 2022.
NOTE
11
Earnings per share
2021 ANNUAL REPORT
108
Annual Report Notes
Intangible assets Goodwill
Trade-
marks
Capitalized
develop-
ment costs¹⁾
Patents &
Agree-
ments
Customer
relations
Technical
know-
how
Intan-
gible
assets,
other Total
Cost, Jan 1, 2020 19,343 636 7,501 1,032 2 ,899 1,317 5,164 37,892
Investments – – 429 – – – 179 608
Acquisitions 610 131 184 49 192 – – 1,165
Sales/disposals – – -261 – -2 – -20 -283
Reclassifications – – – – – – 0 0
Translation differences -1,894 -72 -365 -111 -325 -150 -420 -3,337
Accumulated cost, Dec 31, 2020 18,058 695 7,488 970 2 ,763 1 ,167 4,904 36,045
Amortization and write-downs,
Jan 1, 2020 -669 -568 -4 ,190 -988 -2,519 -1,159 -3,516 -13,609
Amortization for the year – -8 -577 -19 -191 -58 -470 -1,324
Write-downs – – -206 – – – -32 -238
Acquisitions – – -137 – – – – -137
Sales/disposals – – 183 – 2 – 19 205
Reclassifications – – – – – – -1 -1
Translation differences 37 64 155 106 300 142 340 1,144
Accumulated amortization
and write-downs, Dec 31, 2020
-632 -512 -4,773 -901 -2,408 -1 ,075 -3,661 -13,960
Closing carrying amount, Dec 31, 2020 17,427 184 2,716 69 355 92 1,243 22,085
NOTE
12
Intangible assets and tangible assets
Intangible assets Goodwill
Trade-
marks
Capitalized
develop-
ment costs¹⁾
Patents &
Agree-
ments
Customer
relations
Technical
know-
how
Intan-
gible
assets,
other Total
Cost, Jan 1, 2021 18,058 695 7,488 970 2,763 1,167 4,904 36,045
Investments – – 346 – – – 122 468
Acquisitions 909 4 – – – 46 77 1,036
Sales/disposals – -3 -266 -9 -12 – -240 -530
Reclassifications – – – – – – 14 14
Translation differences 1,368 53 195 81 241 113 283 2,334
Accumulated cost, Dec 31, 2021 20,336 749 7,763 1,042 2, 993 1,326 5,159 39,368
Amortization and write-downs,
Jan 1, 2021 -632 -512 -4,773 -901 -2,408 -1, 075 -3,661 -13,960
Amortization for the year – -3 -378 -18 -77 -6 -446 -927
Write-downs – – -6 – – – – -6
Acquisitions – – – – – – -2 -2
Sales/disposals – 3 258 9 10 – 236 516
Reclassifications – – – – – – -8 -8
Translation differences -23 -48 -103 -79 -227 -107 -244 -833
Accumulated amortization
and write-downs, Dec 31, 2021
-655 -560 -5,000 -989 -2,703 -1,188 -4,123 -15,220
Closing carrying amount, Dec 31, 2021 19,681 189 2,763 53 290 137 1,035 24,148
1) Write-downs of capitalized development costs amounted to SEK -6 M (-206), whereof SEK – M (-60) within Acute Care Therapies, SEK -1 M (-29) within Life Science and
SEK -5 M (-117) within Surgical Workflows.
2021 ANNUAL REPORT
109
Notes Annual Report
Tangible assets
Buildings
and land¹⁾
Plant and
machinery
Equipment,
tools, fixtures
and fiings
Rental
equipment
Construction
in progress Total
Cost, Jan 1, 2021 3,040 1,718 2,540 682 277 8,258
Investments 50 43 119 1 248 462
Acquisitions 1 1 5 – – 7
Sales/disposals -238 -77 -270 -34 -6 -624
Reclassifications 174 42 100 10 -241 86
Translation differences 161 81 107 20 16 385
Accumulated cost, Dec 31, 2021 3,190 1,809 2,600 681 295 8,574
Depreciation and write-downs,
Jan 1, 2021 -1,724 -1,358 -1,850 -371 – -5,302
Depreciation for the year -111 -84 -215 -72 – -482
Write-downs 0 -1 0 – – -1
Acquisitions -1 – -4 – – -5
Sales/disposals 159 75 257 14 – 505
Reclassifications -7 0 -32 42 – 4
Translation differences -80 -63 -77 -12 – -231
Accumulated depreciation
and write-downs, Dec 31, 2021
-1,765 -1,431 -1,920 -398 – -5,513
Closing carrying amount, Dec 31, 2021 1,425 378 680 283 295 3,060
1) Closing carrying amount for land amounted to SEK 155 M (185).
Tangible assets
Buildings
and land¹⁾
Plant and
machinery
Equipment,
tools, fixtures
and fiings
Rental
equipment
Construction
in progress Total
Cost, Jan 1, 2020 3,256 1,758 2,569 682 240 8,505
Investments 18 62 122 9 225 437
Acquisitions – 37 42 – – 79
Sales/disposals -15 -53 -162 -95 -18 -344
Reclassifications 22 33 142 138 -144 191
Translation differences -240 -119 -172 -52 -26 -610
Accumulated cost, Dec 31, 2020 3,040 1,718 2,540 682 277 8,258
Depreciation and write-downs,
Jan 1, 2020 -1,754 -1,377 -1,838 -390 – -5,359
Depreciation for the year -111 -92 -221 -57 – -480
Write-downs – – -18 -1 – -19
Acquisitions – -32 -34 – – -66
Sales/disposals 15 51 139 47 – 252
Reclassifications
– -1 -3 -4 – -8
Translation differences 125 93 126 34 – 378
Accumulated depreciation
and write-downs, Dec 31, 2020
-1,724 -1,358 -1,850 -371 – -5,302
Closing carrying amount, Dec 31, 2020 1,316 361 690 312 277 2,956
2021 ANNUAL REPORT
110
Annual Report Notes
NOTE
13
Inventories
SEK M 2021 2020
Raw materials 1,596 1,550
Work in progress 724 613
Finished products 2,447 2,351
Total 4,767 4,513
Of the Group’s inventories, SEK 4,734 M (4,432) is measured at cost
and SEK 33 M (81) at net realizable value. The write-down during
the year amounted to SEK 201 M (281). Reversed amounts from
prior years amounted to SEK 206 M (121). The amounts are
reported as cost of goods sold in the income statement.
Impairment testing
Goodwill 2021 2020
Acute Care Therapies 15,740 13,736
Surgical Workflows 3,106 2,893
Life Science 834 798
Total 19,681 17,427
Goodwill is distributed among the Group’s cash generating units
(CGUs), which are identified per business area.
Goodwill and other net assets are tested for impairment annu-
ally and whenever conditions indicate that impairment may be
necessary. The recoverable amount for CGUs is determined based
on the calculated value in use. For impairment-testing purposes,
this has been done at the lowest level where separable cash flows
have been identified, which for Getinge is the same as its business
areas.
Assumptions
The value in use of goodwill and other net assets aributable to
Acute Care Therapies, Surgical Workflows and Life Science was
calculated based on discounted cash flows, which are based on as-
sumptions regarding sales growth and the cost trend. Cash flows
for the first three years are based on a financial plan approved
by the Board. Cash flows aer this three-year period have been
determined using a growth rate corresponding to 2%. This growth
is based on reasonable prudence and does not exceed long-term
growth for the industry as a whole. A discount rate of 8.8% (8.4)
before tax was applied when calculating the value in use of all
business areas. Right-of-use assets are included in the net assets
tested for impairment for each business area and future cash flows
referring to lease contracts are taken into account when determin-
ing the value in use. With the assumptions described above, value
in use exceeds the carrying amount for all CGUs.
Sensitivity analysis
In connection with the impairment test, sensitivity analyses have
been performed regarding changes in growth rate and discount
rate, which have a significant impact on the calculation of the
discounted cash flows. The sensitivity analyses showed that the
negative changes below would not individually generate a need for
impairment in any business area:
• Growth rate aer year three decreases to 1%
• Discount rate before tax increases 1 percentage
point to 9.8%
Intangible assets
Except goodwill, there are within intangible assets also trade-
marks amounting to SEK 143 M (135) whose useful life has been
assessed as indefinite. For these assets, no forseeable time limit
have been applied for expected future cash flows. The useful life
for other intangible assets is three to 15 years. For strategic
acquisitions, the useful life exceeds five years.
2021 ANNUAL REPORT
111
Notes Annual Report
Accounts receivable net, aer provision for expected credit losses,
theoretically constitutes maximum exposure for the calculated
risk of losses. Accordingly, the carrying amount of accounts
receivable represents the fair value. It is the Group’s opinion that
there is no significant concentration of accounts receivable to
any single client. Leers of credit or the equivalent normally cover
sales to countries outside the OECD. Confirmed credit losses in
relation to net sales amounted to 0.1% (0.1) for the 2021 fiscal year.
The loss allowance is based on historical credit losses and taking
into consideration current and forward-looking information about
customers’ payment capacity.
A maturity analysis of accounts receivable before loss allowance is presented below:
SEK M 2021 2020
Not fallen due 3,678 3,950
Fallen due 1–5 days 190 211
Fallen due 6–30 days 319 472
Fallen due 31–60 days 170 266
Fallen due 61–90 days 106 183
Fallen due, more than 90 days 484 498
Total 4,948 5,580
At December 31, 2021, the Group’s provisions for doubtful receivables totaled SEK 253 M (243). A maturity analysis of these accounts
receivable is presented below:
SEK M 2021 2020
Not fallen due -17 -12
Fallen due 1–5 days -1 0
Fallen due 6–30 days -2 0
Fallen due 31–60 days -2 -1
Fallen due 61–90 days -4 -1
Fallen due, more than 90 days -226 -228
Total -253 -243
Recognized amounts, by currency, for the Group’s accounts receivable are as follows:
SEK M 2021 2020
EUR 1,577 1,854
USD 1,542 1,923
GBP 232 187
CAD 98 174
SEK 142 143
Other currencies 1,357 1,300
Total 4,948 5,580
Changes in loss allowance are as follows:
SEK M 2021 2020
At beginning of the year -243 -197
Acquisitions – 0
Provision for expected losses -53 -118
Receivables wrien off during the year that cannot be recovered 20 24
Recovered doubtful receivables 34 26
Translation differences -11 23
At year-end -253 -243
NOTE
14
Accounts receivable
SEK M 2021 2020
Accounts receivable before provisions 4,948 5,580
Loss allowance -253 -243
Total 4,695 5,338
2021 ANNUAL REPORT
112
Annual Report Notes
NOTE
17
Share capital
Class of shares A B Total
Quotient value per share, SEK 0.50 0.50
Number of shares outstanding:
December 31, 2020 18,217,200 254,152,373 272,369,573
December 31, 2021 18,217,200 254,152,373 272,369,573
Shares’ voting rights in % 41.8 58.2 100.0
In accordance with the Articles of Association, the company’s
share capital amounts to not less than SEK 75 M and not more
than SEK 300 M. Within these limits, the share capital can be
raised or lowered without requiring an amendment to the Articles
of Association. The maximum number of shares is 600 million.
One Class A share carries ten votes and one Class B share carries
one vote. Both classes of shares have the same quotient value, which
is SEK 0.50. At December 31, 2021, the company’s share capital
totaled SEK 136 M (136).
NOTE
16
Prepaid expenses and accrued income
SEK M 2021 2020
Prepaid insurance expenses 47 30
Prepaid commissions 49 40
Prepaid IT expenses 90 10
Other 98 152
Total 283 233
NOTE
15
Contract assets
SEK M 2021 2020
Service 74 73
Projects 289 294
Other 85 86
Total 448 453
Contract assets refer to accrued income relating to service, projects that are recognized according to the percentage of completion
method and other income.
NOTE
18
Unutilized overdra facilities and credit facilities
At December 31, 2021, the total granted, unutilized overdra facili-
ties were SEK 538 M (526). In addition, there were unutilized short-
term credit facilities of SEK 839 M (951) and commied, unutilized
facilities for medium and long-term credit of SEK 5,011 M (5,220),
which may be utilized without qualification.
2021 ANNUAL REPORT
113
Notes Annual Report
NOTE
19
Net interest-bearing debt
SEK M 2021 Change 2020
Interest-bearing current liabilities 475 -1,721 2,196
Interest-bearing long-term liabilities 2,795 -4,225 7,020
Pension provisions, interest-bearing 3,378 19 3,359
Leasing liabilities 1,036 46 990
Less cash and cash equivalents -4,076 1,980 -6,056
Total 3,609 -3,900 7,509
SEK M
Cash and cash
equivalents
Leasing
liabilities
Interest-bea-
ring liabilities
Pension
provision, inte-
rest-bearing Total
Net debt, 1 Jan, 2020 -1,254 908 9,112 3,555 12,321
Cash flow affecting net debt
- Raising of loans – – 4,327 – 4,327
- Repayment – -390 -3,728 -56 -4,174
- Changes in cash -4,911 – – – -4,911
Non cash flow changes
- Acquisitions – – 11 – 11
- Changes in lease agreements – 559 – – 559
- Translation dierences 110 -87 -506 -153 -637
- Other
– – – 13 13
Net debt, 31 Dec,2020 -6,056 990 9,216 3,359 7,509
SEK M
Cash and cash
equivalents
Leasing
liabilities
Interest-bea-
ring liabilities
Pension
provision, inte-
rest-bearing Total
Net debt, 1 Jan, 2021 -6,056 990 9,216 3,359 7,509
Cash flow affecting net debt
- Raising of loans
– – 1,170 – 1,170
- Repayment – -389 -7,085 -74 -7,548
- Changes in cash 2,006 – – – 2,006
Non cash flow changes
- Changes in lease agreements – 381 – – 381
- Translation dierences -26 54 -31 88 85
- Other
– – – 5 5
Net debt, 31 Dec,2021 -4,076 1,036 3,270 3,378 3,609
Liquidity risk
The Group’s current interest-bearing liabilities totaled SEK 475 M
(2,196) and are covered by unutilized commied credit facilities
of SEK 5,011 M (5,220). The Group’s long-term interest-bearing
liabilities amounted to SEK 2,795 M (7,020). The average interest
expense for the Group’s liabilities to credit institutions amounted
to approximately 1.6% (1.6).
Debt/equity ratio
According to the terms of the main credit facilities, the net debt/
equity ratio must be below a certain level. At year-end, the net
debt/equity ratio was well below this level.
2021 ANNUAL REPORT
114
Annual Report Notes
NOTE
20
Leases
Right-of-use assets, SEK M Building
Cars & other
vehicles
Machinery &
equipment Total
Cost, Jan 1, 2021 1,069 528 27 1,624
Entered into new leasing contracts 114 154 1 269
End of lease contracts -55 -119 -4 -178
Reassessment/modifications 120 – 0 120
Translation differences 54 30 0 84
Accumulated cost, Dec 31, 2021 1,301 592 25 1,918
Depreciation and write-downs, Jan 1, 2021 -365 -231 -11 -606
Depreciation for the year -225 -167 -6 -398
End of lease contracts 51 120 4 175
Translation differences -15 -14 0 -28
Accumulated depreciation and write-downs, Dec 31, 2021 -553 -292 -13 -858
Closing carrying amount, Dec 31, 2021 748 300 12 1,060
Right-of-use assets, SEK M Building
Cars & other
vehicles
Machinery &
equipment Total
Cost, Jan 1, 2020 846 417 20 1,283
Entered into new leasing contracts 262 215 10 486
End of lease contracts -49 -52 -1 -101
Reassessment/modifications 90 – 0 89
Translation differences -79 -53 -1 -133
Accumulated cost, Dec 31, 2020 1,069 528 27 1,624
Depreciation and write-downs, Jan 1, 2020 -205 -132 -5 -342
Depreciation for the year -227 -171 -7 -405
End of lease contracts 45 51 0 97
Translation differences 22 22 0 44
Accumulated depreciation and write-downs, Dec 31, 2020 -365 -231 -11 -606
Closing carrying amount, Dec 31, 2020 704 297 17 1,017
The leasing period for buildings usually amounts to between 3 to 5
years, while for cars and other vehicles it is between 3 to 4 years.
Leasing payments are discounted with the Group's marginal
borrowing rate. The Group's weighted average marginal borrowing
rate was 1.7% (1.8).
2021 ANNUAL REPORT
115
Notes Annual Report
Recognized cost for lease contracts, SEK M 2021 2020
Depreciation on right-of-use assets -398 -405
Interest expenses on lease liabilities -22 -23
Cost related to short-term leases -1 0
Cost related to low-value leases -16 -15
Total -437 -443
Getinge as a lessor
Operating leases, SEK M 2021 2020
Due within 1 year 61 59
Due within 2 to 5 years 179 162
Due in more than 5 years 20 18
Total 259 239
Financial leases, SEK M 2021 2020
Due within 1 year 14 3
Due within 2 to 5 years 51 14
Due in more than 5 years 66 14
Total 131 31
Payments for short-term leasing agreements regarding equipment
and vehicles and all leasing agreements of low-value are expensed
in the income statement. Short-term leasing agreements are
Leasing liabilities, SEK M 2021 2020
Short-term 336 323
Long-term 700 667
Total 1,036 990
The total cash-outflow for leasing contracts amounted to SEK -432 M (-437). Information about Getinge's leasing liabilities undiscounted
cash out-flows, see Note 28.
agreements with a leasing period of less than 12 months. Low-
value contracts include IT equipment and oce equipment.
2021 ANNUAL REPORT
116
Annual Report Notes
NOTE
21
Restructuring reserves
SEK M FDA Personnel Other Total
Opening balance 2020 234 74 43 351
Provisions – 127 21 148
Used amount -136 -74 -28 -239
Unutilized funds restored – 3 -3 0
Translation differences -9 -8 -2 -20
Closing balance 2020 89 121 30 240
Of which:
Short-term 210
Long-term 30
SEK M FDA Personnel Other Total
Opening balance 2021 89 121 30 240
Provisions – 90 – 90
Used amount
-59 -129 -11 -199
Unutilized funds restored – -22 -11 -33
Translation differences 1 5 -2 3
Closing balance 2021 31 65 5 102
Of which:
Short-term 85
Long-term 17
Expected timing of outflow, SEK M Total
Within 1 year 85
Within 3 years 12
Within 5 years 3
> 5 years 2
Closing balance 2021 102
Provision FDA
In reaction to the US Food and Drug Administration’s (FDA)
comments on several of the quality management processes and
documentation procedures in Acute Care Therapies’ manufac-
turing units in 2013, quality work were initiated in the form of a
remediation program.
Getinge commied SEK 995 M in 2014 related to improvements
under the remediation program, and in 2016 SEK 400 M was
commied for the same purpose. An additional provision of SEK
488 M was made in 2017 and the total cost of the remediation pro-
gram thus amounted to SEK 1,983 M, of which SEK 100 M is fines.
During 2021 Getinge has completed its remediation measures, in
accordance with the Consent Decree in year 2015 with the FDA.
This does not automatically mean that Getinge is out of the Con-
sent Decree, but that all entities covered by the Consent Decree
now can put their eorts into forward-looking activities. However,
a number of costs are expected to arise aer the fourth quarter of
2021 and are expected to be covered by existing reserves accord-
ing to the table above.
NOTE
22
Other provisions
SEK M
Guarantee
reserve Personnel Other Total
Opening balance 2020 207 155 2,054 2,416
Acquisitions – 1 42 43
Provisions 154 12 162 328
Used amount -73 -22 -362 -457
Unutilized funds restored -22 – -172 -194
Translation differences -13 -6 -237 -256
Closing balance 2020 253 140 1,488 1,881
Of which:
Short-term 519
Long-term 1,362
2021 ANNUAL REPORT
117
Notes Annual Report
NOTE
23
Contract liabilities
SEK M 2021 2020
Advances from customers 793 692
Service 613 471
Other 227 192
Total 1,633 1,355
Contract liabilities refers to advances from customers, deferred income relating to service and other. Contract liabilities in the form of
deferred income and advances from customers in the beginning of the year were essentially recognized in income during the financial year.
Provisions under the item other primarily refer to claims related to
Atrium Medical Corporation’s surgical mesh products.
In the third quarter of 2018, Getinge made a provision of SEK 1.8
billion for expected costs related to Atrium Medical’s surgical mesh
product liability claims filed in the US and Canada. The claims con-
sist of individual lawsuits, consolidated state cases and consolidat-
ed multi-district federal litigation. The provision is intended to cover
all costs related to the claims, including defense and handling of
claims. The use of polypropylene mesh is the established standard
for hernia repair and the patients are claiming damages for compli-
cations allegedly sustained aer receiving surgical mesh implants.
A material increase in the number of claims filed began in late 2017,
following the consolidation of individual cases in the group action.
The claims are being contested by Getinge and there have, to
date, been no adverse verdicts against Atrium Medical. The
legal proceedings against the insurance companies, Moderna
Försäkringar (Swedish branch of Tryg Forsikring A/S Danmark)
and If Skadeförsäkringar AB (publ), are expected to continue in
2022. The litigations against the insurers have not impacted the
provision amount.
At the start of December 2021, Getinge’s subsidiary Atrium
Medicals entered into a selement agreement with the plainti’s
lead counsel related to the multidistrict litigation (MDL) linked to
surgical mesh product liability in the US. An additional provision of
SEK 600 M has been made to account for the selement in addition
to litigation expenses incurred to date.
The selement agreement was executed to resolve maers
pending in the District Court of New Hampshire, US. Getinge
expects the selement to become final and payment to be made
during the first half of 2022. The selement is not an admission
of liability or wrongdoing by the company. Getinge will continue
to defend against any litigation that the final agreement does not
resolve. Costs for such litigations are not expected to be material.
SEK M
Guarantee
reserve Personnel Other Total
Opening balance 2021 253 140 1,488 1,881
Acquisitions – – 364 364
Provisions 145 63 740 948
Used amount -91 -56 -238 -384
Unutilized funds restored -30 – -10 -41
Reclassification 88 – -27 61
Translation differences 10 3 169 183
Closing balance 2021 375 151 2,487 3,012
Of which:
Short-term 2,331
Long-term 681
Expected timing of outflow, SEK M Total
Within 1 year 2,331
Within 3 years 634
Within 5 years 17
> 5 years 30
Closing balance 2021 3,012
2021 ANNUAL REPORT
118
Annual Report Notes
Dec 31, 2021, SEK M
Funded
pension plans
Unfunded
pension plans Total
Present value of commitments -1,283 -3,127 -4,410
Fair value of plan assets 856 – 856
Net provision in the balance sheet -427 -3,127 -3,554
Dec 31, 2020, SEK M
Funded
pension plans
Unfunded
pension plans Total
Present value of commitments -1,265 -3,090 -4,355
Fair value of plan assets 831 – 831
Net provision in the balance sheet -434 -3,090 -3,524
Defined-contribution plans
In several countries, the Group’s employees are covered by
defined-contribution pension plans. The pension plans are pri-
marily retirement pensions. The premiums are paid continuously
throughout the year by each Group company to separate legal
entities, such as insurance companies. The size of the premium
paid by the employees and Group companies is normally based
on a set proportion of the employee’s salary and in certain cases
the employees pay for a portion of the premiums themselves. The
expense for defined-contribution plans amounted to SEK 357 M
(363) during 2021.
Defined-benefit plans
Getinge has large defined-benefit pension plans in Sweden,
Germany and the US. The pension plans primarily comprise re-
tirement pensions. Each employer normally has an obligation to pay
a lifelong pension. The pension is earned according to the number of
employment years and the employee must be aliated with the plan
for a certain number of years to achieve full retirement pension enti-
tlement. Pension commitments are calculated based on actuarial
assumptions and gains and losses of changed actuarial assump-
tions are recognized as part of comprehensive income.
Sweden
Most of the Group’s defined-benefit pension commitments
in Sweden are so called PRI liabilities. These plans are closed
for new employees but remain open for the employees en-
compassed by the plans. The commitments pertain to lifelong
retirement pensions and the benefits are primarily based on
the employees’ final salary. The pension commitments were
calculated at a discount rate based on the return on the market
rate of Swedish mortgage bonds. These bonds are deemed to
be of high quality since they are guaranteed by assets and the
mortgage bond market in Sweden is considered to be deep and
liquid. The terms of the bonds correspond to the average term of
the commitments, which is 22 years.
At year-end, the amount of the Group’s defined-benefit pension
commitments in Sweden totaled SEK 627 M (697). The Swedish
pension commitments decreased year-on-year mainly due to a
higher discount rate. Plan assets exist to only a minor extent and
are aributable to a small plan that is not credit-insured.
Germany
Some employees in Germany are part of defined-benefit pension
plans. These plans are closed for new employees but remain open
for the employees encompassed by the plan. The benefits are
based on the employees’ final salary and the remaining weighted
average term of the total commitment is 16 years. The pension
plans are insured in accordance with statutory requirements.
Total defined-benefit pension commitments increased to
SEK 2,404 M (2,281) during the year. The increase was mainly due
to higher inflation rate assumptions and currency rate fluctua-
tion. The discount rate is based on high-quality corporate bonds
with a term corresponding to the average remaining term of the
commitment.
USA
The Group’s defined-benefit pension commitment in the USA
is closed for new employees and also to the employees encom-
passed by the plan, meaning that no new pension rights are vest-
ed. The commitment’s remaining average term is 14 years.
The total defined-benefit commitment decreased to
SEK 1,230 M (1,240), mainly due higher discount rate oset by
currency rate fluctuation. A fully funded part of the defined-bene-
fit scheme was seled during the year, which also decreased the
obligation but had no material impact on the net liability.
The value of the plan assets increased from SEK 778 M to
SEK 802 M, mainly due to currency rate change and return on plan
assets, oset by funds were used for the selement. Both the de-
fined-benefit commitment and the return on the plan assets were
calculated using a discount rate based on high-quality corporate
bonds with a term corresponding to the average remaining term
of the commitment.
NOTE
24
Provisions for pensions and similar obligations
2021 ANNUAL REPORT
119
Notes Annual Report
Pension commitments, SEK M 2021 2020
Opening balance -3,524 -3,715
Costs for service in the current year -58 -58
Net interest expenses -46 -52
Return on plan assets 22 71
Gains/(losses) aributable to changed demographic assumptions -2 13
Gains/(losses) aributable to changed financial assumptions -44 -136
Experience-based gains/(losses) 4 42
Special employer’s contribution on actuarial assumptions 16 -4
Restriction in plan surpluses with regard to asset ceilings -1 1
Exchange-rate differences -92 164
Contributions paid by employer 62 40
Paid benefits 109 110
Closing balance -3,554 -3,524
Of which:
Interest-bearing pension commitments -3,378 -3,359
Non-interest-bearing pension commitments -175 -165
The defined-benefit pension commitment
and composition of plan assets 2021, SEK M
Present value of
commitments
Fair value of
plan assets
Net provision
for pensions
Sweden -627 26 -601
Germany -2,404 21 -2,383
USA -1,230 802 -428
Other countries -149 7 -142
Total -4,410 856 -3,554
Significant actuarial assumptions, % 2021 2020
Weighted average, %
Discount rate 1.7 1.6
Expected salary increase rate 2.4 2.6
Expected inflation 1.9 1.6
Significant actuarial assumptions 2021, % Sweden Germany USA Other countries
Weighted average, %
Discount rate 1.9 1.2 2.6 1.0
Expected salary increase rate 2.0 2.5 – 2.7
Expected inflation 2.0 1.7 – 1.6
Sensitivity of defined-benefit commitments
to changes in the significant assumptions 2021, SEK M
Expected value of
pension commit-
ments
Change compared
with used calculation
assumptions
Pension commitments according to original valuation -4,410
Discount rate +1 percentage point -3,824 586
Inflation +1 percentage point -4,881 -471
Salary increases +1 percentage point -4,479 -69
The sensitivity analyses above are based on a change in an
assumption, while all other assumptions remain constant. It is
unlikely that this will happen in practice, and changes in some of
the assumptions may correlate. The calculation of sensitivity in the
defined-benefit commitments for material actuarial assumptions
uses the same method as that used in the calculation of pension
liabilities
1)
.
1) The present value of defined-benefit commitments by applying the Projected Unit
Credit Method at the end of the reporting period.
2021 ANNUAL REPORT
120
Annual Report Notes
NOTE
25
Accrued expenses and deferred income
SEK M 2021 2020
Salaries 1,638 1,539
Social security expenses 401 379
Commissions 186 169
Interest expenses 6 22
Consultancy fees 82 51
Other 480 709
Total 2,794 2,868
NOTE
26
Pledged assets and contingent liabilities
Pledged assets
The Group had no pledged assets
Contingent liabilities, SEK M 2021 2020
Guarantees 336 294
Other 60 90
Total 396 384
Composition of plan assets, SEK M 2021 2020
Equities 182 186
Financial instruments 549 546
Properties 38 29
Cash and cash equivalents and similar assets 10 12
Other 77 58
Total 856 831
The weighted average term of the pension commitments is
16 years (16). For the 2022 fiscal year, the fees for defined-benefit
plans are expected to amount to SEK 98 M.
Information regarding recognition of multi-employer
defined-benefit pension plans
The commitment for retirement pensions and family pensions for
salaried employees in Sweden is safeguarded through insurance
with Alecta. According to a statement from the Swedish Financial
Reporting Board, UFR 10, this is a multi-employer defined-benefit
plan. For the 2021 fiscal year, the company did not have access to
such information that makes it possible to recognize this plan as
a defined-benefit plan. The pension scheme in accordance with
ITP, which is safeguarded through insurance with Alecta, is thus
recognized as a defined-contribution scheme. During the year, fees
for pension insurance covered by Alecta amounted to SEK 46 M
(37). Alecta’s surplus can be distributed to the insurers and/or the
insured. At year-end 2021, Alecta’s surplus in the form of the col-
lective consolidation level was approximately 172% (148). The col-
lective consolidation level comprises the market value of Alecta’s
assets as a percentage of the insurance commitment calculated in
accordance with Alecta’s actuarial calculation assumption, which
does not correspond with IAS 19.
2021 ANNUAL REPORT
121
Notes Annual Report
NOTE
27
Acquisition of operations
Net assets acquired, SEK M 2021 2020
Intangible assets 125 418
Tangible assets 2 13
Inventories 34 84
Accounts receivables 7 99
Other current receivables 3 49
Cash and cash equivalents 1 30
Other provisions -12 -5
Other interest-bearing liabilities – -11
Deferred tax liabilities -12 -80
Accounts payable -5 -39
Other non-interest-bearing liabilities -6 -107
Identifiable net assets 137 451
Goodwill 909 610
Total purchase prices 1 ,046 1,061
Add/Less:
Additional purchase prices and other adjustments 2 6
Acquisition of shares from non-controlling interests
32 –
Unpaid purchase prices
-364 -38
Cash and cash equivalents in the acquired operations -1 -30
Impact on the Group's cash and cash equivalents 715 999
Acquisitions in 2021
Talis Clinical and development activities from Verrix were acquired
in 2021. In addition, shares in the subsidiary Pulsion Medical
Systems SE were acquired for SEK 32 M and an amount of SEK 2 M
was paid due to adjustments of working capital related to the
acquisition of Quadralene. The table above presents the fair value
of acquired identifiable net assets, recognized goodwill and the
impact on the Group’s cash and cash equivalents.
Talis Clinical
In December 2021, 100% of Talis Clinical LLC, a US-based leading
innovator of High Acuity cloud-based soware solutions, was
acquired. The company’s oering complements Getinge’s existing
products for the perioperative care process, critical care support
and ECMO therapy. Talis Clinical has 56 employees and gene-
rated sales of SEK 57 M in 2021. The purchase price amounted to
SEK 844 M, of which SEK 248 M comprised contingent purchase
prices that may be paid in 2024 if specific regulatory approval and
certificates are obtained. In addition, a maximum of USD 26.5 M
may be paid in earn-outs if certain financial targets are met. The
costs of the acquisition amounted to SEK 12 M and were charged
to earnings for 2021. The goodwill that arose in connection with the
acquisition amounted to SEK 782 M, and is primarily aributable to
strategic advantages and sales-related synergies. The acquisition
has not had any material impact on Getinge’s sales and earnings
in 2021. At the time of publication of this report, the acquisition
analysis was preliminary.
Verrix
In September 2021, Getinge acquired development activities
related to biological indicators from Verrix, an American start-
up company. The products are in a development phase and not
yet commercially available but in the long-term are intended to
strengthen the Group’s oering in sterile reprocessing. The pur-
chase price amounted to SEK 202 M, of which SEK 127 M pertai-
ned to goodwill that is primarily aributable to strategic advan-
tages in the form of growth opportunities and a broader product
range. The costs of the acquisition amounted to SEK 3 M and were
charged to earnings. At the time of publication of this report, the
acquisition analysis was still preliminary.
2021 ANNUAL REPORT
122
Annual Report Notes
Most of Getinge’s operations are located outside Sweden. This situ-
ation entails that the Group is exposed to dierent types of financial
risks that may cause fluctuations in net profit, cash flow and equity
due to changes in exchange rates and interest rates. In addition, the
Group is exposed to refinancing and counterparty risks. The primary
role of the Group’s finance function is to support the business activ-
ities and to identify and in the best way manage the Group’s financial
risks in line with the Board’s established finance policy and related
directives, which are revised annually. Getinge’s financial activities
are centralized to benefit from economies of scale, to ensure good
internal control and to facilitate monitoring of risk.
Currency risks
Currency risks comprise exchange-rate fluctuations, which have
an impact on the Group’s earnings and equity. Currency exposure
occurs in connection with payments in foreign currency (transac-
tion exposure) and when translating foreign subsidiaries’ balance
sheets and income statements to the presentation currency SEK
(translation exposure). The eect of exchange-rate fluctuations
is presented in the section on financial risk management in the
Administration Report.
Transaction exposure
The Group’s payment flows in foreign currencies are mainly gener-
ated by export sales, with the largest flows in USD, EUR, CNY and
JPY. Getinge’s finance policy stipulates that forecast net flows in
foreign currency can be hedged for up to 24 months. Hedging is
conducted using currency forwards, currency swaps and currency
options. The market value of financial currency derivatives that
meet the cash flow hedging requirements amounted to SEK -22 M
(23) at December 31, 2021.
Translation exposure — income statement
When translating the results of foreign subsidiaries into SEK, cur-
rency exposure occurs, which aects the Group’s earnings when
exchange rates fluctuate. Getinge does not hedge this risk.
Translation exposure — balance sheet
Currency exposure occurs when translating net assets of foreign
subsidiaries into SEK, which can aect consolidated other com-
prehensive income. Although Getinge does not have the specif-
ically stated goal of hedging translation exposure, the finance
policy states that the Group’s lending is to take place in currencies
that limit translation exposure.
Interest-rate risk
Interest-rate risks are the changes in market interest rates that
aect the Group’s net interest. How quickly interest-rate chang-
es impact net interest depends on the fixed-interest term of the
loans. At December 31, 2021, the average fixed-interest term in the
loan portfolio was five months.
If the average interest rate for currencies represented in the
Group’s loan portfolio at the end of the year changed by 1 percent-
age point, this would aect profits by +/- SEK 19 M on an annual
basis. The market value of financial interest-rate derivative instru-
ments that meet the cash flow hedging requirements amounted
to SEK -4 M (-12) at December 31, 2021.
Financing and liquidity risk
Financing risk is defined as the risk of the cost being higher and
financing opportunities limited as the loan is renegotiated. This
also includes that payment obligations cannot be met as a result
of insucient liquidity or diculties in securing funding.
Financing risk can arise through disruptions in the financial
markets, for example, decisions on new regulations or the imple-
mentation of recently enacted laws. Getinge endeavors to have an
investment grade rating. The Group’s existing credit facilities are
currently deemed to be sucient.
The Group’s sources of financing primarily comprise equity,
cash flow from operating activities and borrowing. To reduce
financing risks, the Group strives to diversify its sources of
financing and maturities according to the Group’s finance policy
and financing strategy. The single largest loan is a syndicated
loan of EUR 490 M with seven banks, of which EUR 70 M falls due
in 2023 and EUR 420 M in 2024. In 2021, the Group renewed the
existing MTN program from 2012 in accordance with the new
regulations for issuing bonds in the Swedish capital market. At
the end of 2021, SEK 1,170 M was outstanding under this program,
of which SEK 570 M is a three-year social bond in accordance with
the ICMA Social Bond Principles, entailing that the proceeds will
exclusively be used to increase production of ECMO machines
and DPTE®-BetaBags.
In addition to these credit facilities, the Group has short-term
uncommied credit lines. For further information on these credit
lines, refer to Note 18. In 2021, loan agreements in EUR, USD and
SEK, corresponding to a net SEK 6 billion, were amortized or
repaid in advance.
At December 31, 2021, the Group’s borrowings were in line with
the requirements under the finance policy pertaining to diversifi-
cation of lenders and maturity dates.
Credit and counterparty risks
The Group’s financial transactions cause credit risks with regard
to financial counterparties. Financial credit risks or counterparty
risks constitute the risk of losses if the counterparties do not fully
meet their commitments. The management of the Group’s finan-
cial credit risk is regulated in the finance policy by accepting only
creditworthy counterparties and fixed limits, which are continu-
ously controlled. At December 31, 2021, the total counterparty ex-
posure in derivative instruments was SEK 0 M (14). The Group has
signed standard neing agreements (ISDA) with counterparties
for currency transactions and interest-rate swaps. These agree-
ments permit relevant financial assets and liabilities to be oset.
Transactions take place within established limits and exposures
are continuously monitored.
Commercial credit risks are limited by a diversified customer base
with a high credit rating. The Group’s customers are found primarily
in the public sector, which means that its credit risk is generally very
low. The credit risk for Getinge’s customers in the private sector is
also deemed to be low. When deemed necessary, credit risk is man-
aged using leers of credit or export credit-related guarantees. The
loss allowance at year-end totaled SEK 253 M (243).
The Group’s accounts receivable are presented in Note 14,
which shows that the share of past due accounts receivable
at December 31, 2021 amounted to SEK 1,270 M in relation to
NOTE
28
Financial risk management
2021 ANNUAL REPORT
123
Notes Annual Report
Cash flow for financial liabilities
The table below shows the Group’s financial liabilities and derivative instruments that comprise financial liabilities, subdivided into the
periods remaining on the closing date until the agreed date of maturity. The amounts stated in the table comprise contractual, undis-
counted cash flows.
the total volume of accounts receivable, which amounted to
SEK 4,948 M. For 40% of past due accounts receivable, payment is
past due by a maximum of one month.
Financial derivatives
Getinge uses financial derivatives to manage interest and currency
exposure arising in its business. The eectiveness of a hedge is as-
sessed when the hedging relationship is entered into. The hedged
item and the hedging instrument are continuously assessed to
ensure that the relationship meets the requirements for hedge
accounting. When the Group hedges purchases/sales in foreign
currency, a hedging relationship is entered into whereby the
critical terms of the hedging instrument match the terms of the
hedged item. In this way, a qualitative assessment of the eective-
ness of the hedging relationship is performed and the relationship
is expected to be eective for the period for which it is valid.
The Group also enters into interest-rate swap agreements that
have the same critical terms as the hedged item. Critical terms
may be benchmark interest rates, reset dates, currencies, ma-
turities and nominal amount. The Group does not hedge 100% of
the principal and thus identifies only a portion of the outstanding
principal that corresponds to the nominal amount of the swap.
At December 31, 2021, all financial derivatives outstanding held
for hedging purposes were deemed to be eective. Consequently,
hedge accounting was applied for these.
All derivatives are classified under level 2 of the value hierar-
chy. Fair value measurements for currency forwards are based on
published forward rates in an active market. The measurement
of interest-rate swaps is based on forward rates as expressed in
market yield curves.
Phase 2 of the Interest Rate Benchmark Reform, whereby IBOR
has served as a global tool and benchmark for interest rates for
short-term unsecured loans between banks, is now being rolled
out from January 2022. Based on amendments to existing loan
agreements, Getinge has waived its right to call in the currencies
and tenors aected by the current LIBOR reform of the syndicated
loan (EUR 490 M). In parallel with this, an agreement has been
made, valid until June 2023, for an outstanding loan of USD 75 M
(falls due in July 2024), and the ISDA 2020 IBOR Fallbacks Protocol
was signed. Accordingly, the eects of the reform are deemed to
be minor and the financial risk low.
Fair value disclosures pertaining to borrowing
and other financial instruments
Essentially, all loans have floating interest rates and, accordingly,
the fair value is assessed as corresponding to the carrying amount.
The fair value of contingent purchase prices is assessed in accor-
dance with Level 3 of the fair value hierarchy. For other financial
assets and liabilities, fair value is assessed as corresponding to the
carrying amount due to the short expected maturity in time.
At December 31, 2021, SEK M < 1 year 1–2 years 2–5 years > 5 years
Bank loans and bond loans (including interest) -509 -318 -2,589 –
Derivative instruments -27 -1 – –
Leasing liabilities -368 -275 -441 -164
Accounts payable -1,921 – – –
Total -2,825 -594 -3,030 -164
Outstanding derivative instruments
SEK M
2021 2020
Nominal
amount Fair value
Nominal
amount Fair value
Interest-rate derivatives 1,178 -4 1,655 -12
Currency derivatives 2,151 -22 309 23
Total 3,329 -26 1,964 11
SEK M
2021 2020
Asset Liability Asset Liability
Interest-rate derivatives – cash flow hedges 1 5 2 14
Currency derivatives – cash flow hedges 1 23 23 –
Total 2 28 25 14
Of which:
Short-term 2 27 23 –
Long-term – 1 2 14
Paid and accrued interest on interest-rate derivatives is continuously recognized in profit or loss. The fair value of derivative instruments
is established using valuation techniques based on observable market information.
2021 ANNUAL REPORT
124
Annual Report Notes
Maturity structure for outstanding derivative instruments in 2021, SEK M
2022 2023 2024 2025 2026 Total
Interest-rate derivatives 1,178 – – – – 1,178
Currency derivatives 2,075 76 – – – 2,151
Total 3,253 76 0 0 0 3,329
The table refers to net flows
Maturity structure for outstanding derivative instruments in 2020, SEK M
2021 2022 2023 2024 2025 Total
Interest-rate derivatives – 1,655 – – – 1,655
Currency derivatives 309 – – – – 309
Total 309 1,655 – – – 1,964
The table refers to net flows
Distribution of currency for outstanding derivative instruments in nominal amounts, SEK M
2021 2020
CHF 2 –
CNY 771 –
DKK 71 13
EUR 1,129 79
PLN 38 –
SEK 500 1,000
USD 818 872
Total 3,329 1,964
Financial instruments by category
Financial assets, SEK M
Assets at
amortized cost
Assets at
fair value through
profit or loss
Derivatives
used for
hedging purposes Total
2021 2020 2021 2020 2021 2020 2021 2020
Derivative instruments – – 1 1 1 24 2 25
Accounts receivable and other receivables, excluding
interim receivables 5,479 6,140 – – – – 5,479 6,140
Cash and cash equivalents 4,076 6,056 – – – – 4,076 6,056
Total 9,555 12,196 1 1 1 24 9,557 12,221
Financial liabilities, SEK M
Liabilities at
amortized cost
Liabilities at fair
value through
profit or loss
Derivatives
used for
hedging purposes Total
2021 2020 2021 2020 2021 2020 2021 2020
Borrowing 3,270 9,216 – – – – 3,270 9,216
Derivative instruments – – – 0 28 14 28 14
Leasing liabilities 1,036 990 – – – – 1,036 990
Contingent purchase prices – – 404 38 – – 404 38
Accounts payable and other financial liabilities 2,521 2,235 – – – – 2,521 2,235
Total 6,827 12,441 404 38 28 14 7,259 12,493
2021 ANNUAL REPORT
125
Notes Annual Report
Reserve of cash flow hedges
The table below shows the composition of the Group’s reserve of cash flow hedges and the change in each component during the year.
SEK M
Currency
forwards
Interest-rate
swaps Total
Opening balance 2020 9 11 20
Change in fair value of hedging instruments recognized in other comprehensive income 22 -26 -4
Reclassification to profit or loss -12 0 -12
Deferred tax -2 6 4
Closing balance 2020 17 -9 8
Opening balance 2021 17 -9 8
Change in fair value of hedging instruments recognized in other comprehensive income -7 8 1
Reclassification to profit or loss -22 -1 -23
Deferred tax 6 -1 5
Closing balance 2021 -6 -3 -9
Derivative instruments – currency forwards
Currency forwards, in the three largest currency pairs, impact the Group’s financial position and earnings as follows:
Derivative instruments - currency forwards CNY/SEK, SEK M 2021 2020
Recognized amount (liability) -7 –
Nominal amount CNY M 543 –
Maturity Jan 2022–Mar 2022 –
Hedge ratio 1:1 –
Change in discounted forward rates for outstanding hedging instruments since January 1 -7 –
Change in value of hedged item to determine effectiveness 7 –
Weighted average of forward rates at year-end (including forward points) 1.43 –
Derivative instruments - currency forwards EUR/SEK, SEK M 2021 2020
Recognized amount (liability(-)/asset) -9 3
Nominal amount EUR M 110 8
Maturity
Jan 2022–Nov 2022 Jan 2021–Jun 2021
Hedge ratio 1:1 1:1
Change in discounted forward rates for outstanding hedging instruments since January 1 -9 3
Change in value of hedged item to determine effectiveness 9 -3
Weighted average of forward rates at year-end (including forward points) 10.31 10.42
Derivative instruments - currency forwards USD/SEK, SEK M 2021 2020
Recognized amount (liability(-)/asset) -2 17
Nominal amount USD M 14 22
Maturity Apr 2022 – Jul 2023 Jan 2021–Nov 2021
Hedge ratio 1:1 1:1
Change in discounted forward rates for outstanding hedging instruments since January 1 -2 17
Change in value of hedged item to determine effectiveness 2 -17
Weighted average of forward rates at year-end (including forward points) 8.85 8.94
Derivative instruments – interest-rate swaps
Interest-rate swaps impact the Group’s financial position and earnings as follows:
SEK M 2021 2020
Recognized amount (liability) -4 -12
Nominal amount 1,178 1,655
Maturity Oct 2022 Aug 2022–Oct 2022
Hedge ratio 1:1 1:1
Change in value of outstanding derivative instruments since January 1 7 -26
Change in value of hedged item to determine effectiveness -7 26
Weighted average rate for outstanding interest-rate swap at year-end
(including forward points) 0.73% 0.50%
2021 ANNUAL REPORT
126
Annual Report Notes
Remuneration and other benefits in 2020
SEK 000s Board fee¹⁾
Base
salary
Short-term
variable
remunera-
tion
Long-term
variable
remunera-
tion
Other
benefits
Pension
expenses Total
Chairman of the Board -1,555 – – – – – -1,555
Board members
-6,040 – – – – – -6,040
Maias Perjos, President & CEO – -23,250 -18,600 -12,810 -2,752 -9,294 -66,706
Other Senior Executives
(9 people) – -25,860 -18,603 -14 104 -3,342 -8,507 -70,416
Total -7,595 -49,110 -37,203 -26,914 -6,094 -17,801 -144,717
1) Also includes fees for work on Board Commiees.
Comments on the table
• Other Senior Executives pertains to remuneration to members
in the Getinge Executive Team, other than the CEO. Excluding
the CEO, the Getinge Executive Team comprised nine individ-
uals at year-end. Only remuneration that has been received
as a member of the Getinge Executive Team is included in the
amounts recognized, which includes individuals that joined and
le the Getinge Executive Team during the year.
• For information on Board fees for each member, refer to pages
44–46.
• In addition to the board fees stated above, Kristian Samuelsson,
via company, received consultancy fees during the financial year
2021 for services provided to the legal advisors representing
Getinge subsidiaries in, maers relating to disputes regarding
claims for surgical mesh implants and insurance disputes.
The consultancy assignments were initiated prior to Kristian
Samuelsson’s appointment as a Board member. To a limited
extent, the assignment continued some time aer Kristian
Samuelsson acceded the position as Board member. For the
period aer he acceded the position as Board member, Kristian
Samuelsson via company, received during 2021 consultancy fees
amounting to SEK 106 thousand.
• Short-term variable remuneration refers to bonuses for the 2021
fiscal year, which will be paid in 2022.
• Long-term variable remuneration refers to amounts earned in
a long-term bonus program for 2019–2021, which will be paid in
2022.
• Other benefits refer to holiday pay, and benefits such as compa-
ny car, medical insurance (sw: sjukvårdsförsäkring), etc.
NOTE
29
Employee costs
SEK M
2021 2020
Board
and CEO Other Total
Board
and CEO Other Total
Salaries and remuneration
-247 -7,728 -7,975 -290 -7,991 -8,281
Social security expenses -38 -1,130 -1,168 -51 -1,289 -1,340
Pension expenses -23 -392 -415 -21 -400 -421
Total -308 -9,250 -9, 558 -362 -9,680 -10,042
Remuneration and other benefits in 2021
SEK 000s Board fee¹⁾
Base
salary
Short-term
variable
remunera-
tion
Long-term
variable
remunera-
tion
Other
benefits
Pension
expenses Total
Chairman of the Board -1,615 – – – – – -1,615
Board members -6,280 – – – – – -6,280
Maias Perjos, President & CEO – -23,315 -18,652 -4,663 -3,668 -9,326 -59,624
Other Senior Executives
(9 people) – -27,241 -19,713 -9,367 -3,128 -7,347 -66,796
Total -7,895 -50,556 -38,365 -14 ,030 -6,796 -16,673 -134,315
1) Also includes fees for work on Board Commiees.
2021 ANNUAL REPORT
127
Notes Annual Report
Annual General Meeting’s guidelines for
remuneration to Senior Executives
The 2021 Annual General Meeting resolved on guidelines for remu-
neration to Senior Executives, which are described in pages 81–83.
Getinge applied the guidelines adopted by the AGM as follows:
Principles: The Annual General Meeting decides on remuneration
to the Chairman of the Board and Board members. Employee
representatives do not receive Board remuneration. Remuneration
to the CEO and other Senior Executives comprises base salary,
variable remuneration, other benefits as well as pensions. Other
Senior Executives comprise the individuals, who together with the
CEO, comprise the Getinge Executive Team. For the Getinge
Executive Team structure, see pages 48–49. The allocation be-
tween base salary and variable remuneration should be propor-
tionate to the Senior Executive’s responsibility and authority. The
CEO’s variable remuneration is maximized to 80% of base salary.
For other Senior Executives, the variable remuneration is maxi-
mized to between 60 and 90% of the base salary.
Annual variable remuneration: The variable remuneration for
Senior Executives is based on performance targets set by the
Board and in order to promote the company’s development, all
members of the Getinge Executive Team have identical targets.
For the 2021 fiscal year, the goals were related to earnings, organic
sales growth and tied-up working capital. All performance targets
were fully achieved, which resulted in a maximum bonus outcome.
Variable long-term remuneration: In addition to base salary and
the above annual variable remuneration, Senior Executives may
also receive a variable long-term bonus that rewards and promotes
the company’s long term value creation. The earnings period for
this bonus must be at least three fiscal years and the bonus may
amount to a maximum of 100% of base salary. In addition, a lim-
itation rule applies to the CEO regarding the payment of variable
long-term remuneration that payment of the annual variable
remuneration and variable long-term remuneration together may
not exceed 100% of basic salary. The part of long-term variable
remuneration that cannot be paid due to the limitation rule will be
payable in coming years or later to the extent that the limitation
rule is not exceeded for the current year.
Pensions: The CEO is entitled to a pension from the age of 62. The
pension is premium based and pension expenses amount to 40%
of base salary. Variable cash remunerations do not qualify for pen-
sion benefits. For other Senior Executives, the retirement age is
65 years, except for one Senior Executive whose retirement age
is 62 years in accordance with local regulations in the country of
residence. All pension benefits are transferable, i.e. not condition-
al on future employment.
Severance pay: The period of notice for the CEO is a minimum
of six months. If termination of employment is initiated by the
company then severance pay of 12 months’ pay will be awarded.
Severance pay is not oset against any other income. Aer the end
of the period of notice, severance pay corresponding to one annual
salary is paid. The company is entitled to deduct any income the
CEO may receive from other employment or business activities
from the severance pay. Upon termination of employment of any
other Senior Executives, they have the right to severance pay of a
minimum of six months and a maximum of one year.
Draing and decision-making process: During the year, the
Remuneration Commiee gave the Board its recommendations
concerning policies for the remuneration to Senior Executives.
The Board discussed the Remuneration Commiee’s proposals
and decided in line with the Remuneration Commiee’s recom-
mendations. Remuneration to the CEO for the 2021 fiscal year
was decided by the Board taking into account the Remuneration
Commiee’s recommendations. Remuneration to other Senior
Executives was decided by the Remuneration Commiee following
a recommendation by the CEO and in consultation with the Chair-
man of the Board.
2021 ANNUAL REPORT
128
Annual Report Notes
NOTE
30
Average number of employees
2021 2020
By country Men Women Unknown Total Men Women Total
Australia 132 79 – 211 143 80 223
Belgium 59 12 – 71 61 12 73
Brazil 59 41 – 100 58 39 97
Colombia 20 11 1 31 19 11 30
Denmark 95 41 2 138 97 41 138
Finland 28 7 3 38 28 9 37
France 668 460 – 1,128 671 398 1,069
United Arab Emirates 49 19 – 69 44 19 63
Hong Kong 31 27 – 58 31 27 58
India 206 34 – 240 218 36 254
Ireland 12 1 – 13 11 1 12
Italy 100 39 – 139 98 41 139
Japan 169 59 – 228 169 59 228
Canada 81 39 – 120 81 41 122
China 374 177 3 554 374 177 551
Mexico 25 18 1 45 26 17 43
Netherlands 179 54 – 233 174 56 230
Norway 27 2 – 29 31 1 32
Poland 208 330 9 547 202 314 516
Portugal 16 6 – 22 16 6 22
Russia 27 29 1 57 25 29 54
Switzerland 43 7 – 50 44 8 52
Serbia 6 4 – 10 7 4 11
Singapore 46 36 – 81 44 37 81
Slovakia 4 1 – 5 3 1 4
Spain 78 34 1 114 80 31 111
Great Britain 233 94 – 327 220 74 294
Sweden 887 332 3 1,222 909 340 1,249
South Africa 6 12 – 18 8 13 21
South Korea 6 5 – 11 7 5 12
Taiwan 21 18 – 39 21 16 37
Thailand 91 47 – 137 92 46 138
Czech Republic 29 10 1 40 26 12 38
Türkiye 203 267 – 470 246 276 522
Germany 1,180 633 1 1,813 1,207 677 1,884
USA 1,399 873 – 2,272 1,429 884 2,313
Vietnam 1 – – 1 – – –
Austria 34 1 – 35 34 3 37
Total average number of
employees
6,831 3,861 25 10,717 6,954 3,841 10,795
Distribution of Senior Executives and Board members at the closing date, % 2021 2020
Women:
Board members of the Parent Company 33% 33%
Other members of the company’s management, incl. CEO 30% 30%
Men:
Board members of the Parent Company 67% 67%
Other members of the company’s management, incl. CEO 70% 70%
2021 ANNUAL REPORT
129
Notes Annual Report
Transactions between Getinge AB (publ) and its subsidiaries,
which are related companies to Getinge AB (publ), were eliminat-
ed in the consolidated financial statements. Business terms and
conditions as well as market-regulated pricing apply for delivery
of products and services between Group companies. No Board
member or senior executive has, or has had, any direct or indirect
participation in any business transactions, between themselves
and the company, that are or were non-transparent in nature,
regarding the applicable terms or conditions. In 2018, Board
members and the Executive Team of Getinge AB (publ) acquired
synthetic options in Getinge issued by the company’s principal
owner Carl Bennet AB. Getinge was not a party to the transactions
and the oering was submied on Carl Bennet AB’s own initiative,
Except what is described below, no significant events have oc-
curred aer the end of the finacial year.
New Executive Vice Presidents appointed
In January 2022, Getinge appointed two new Executive Vice Presi-
dents and members of the Getinge Executive Team: Elin Frostehav
and Eric Honroth. All changes are eective as of April 1, 2022.
Elin Frostehav has been appointed President Acute Care Ther-
apies and member of the Getinge Executive Team. Elin currently
serves as Vice President Critical Care, a product area within Acute
Care Therapies in Getinge. Elin joined Getinge in 2019 and pre-
viously held leading global positions within Semcon, an interna-
tional technology company, in the areas of product development
and digitalization. Prior to Semcon, Elin held various positions
at FlexLink, a global factory automation company. Elin succeeds
Jens Viebke who will take on a new role in Getinge as Executive
Vice President Research & Business Development, focusing on
Getinge’s Research Programs and M&A activities. In this role, Jens
Viebke will continue to report to Maias Perjos, President & CEO,
but no longer be a member of the Getinge Executive Team.
Eric Honroth has been appointed President Life Science and
member of the Getinge Executive Team. Eric is currently President
North America Region in Getinge and has been with the company
without Getinge’s participation. The options were acquired at a price
corresponding to the estimated market value. Aer the end of the
financial year, the program was closed and all synthetic options
were vested.
Following the distribution of Arjo in December 2017, Getinge
carried out normal commercial transactions with Arjo for the sale
and purchase of goods and services. Getinge’s receivables from
Arjo amounted to SEK 0 M (6) and liabilities amounted to SEK 4 M
(8) at December 31, 2021.
In addition to the above, there were no significant transactions
with related parties. For remuneration and benefits to senior
executives and Board members, see Note 29.
NOTE
31
Transactions with related parties
NOTE
32
Events aer the end of the fiscal year
since 2018. He has more than 20 years of extensive experience in
global leadership roles in the medical devices industry, including
roles at Becton Dickinson, CareFusion and Abbo Vascular. Eric
succeeds Harald Castler who aer a long and successful career at
Getinge has decided to retire.
Acquisition of Irasun GmbH
Aer the end of the reporting period, Getinge completed a minor
acquisition of Irasun GmbH, which is based in Munich. The compa-
ny develops products for venous drainage and temperature con-
trol, which can be used in combination with heart lung machines
and equipment for extracorporeal life support (ECLS). Through the
acquisition, Getinge broadens its portfolio to include innovative
solutions in surgical perfusion.
Russia’s invasion of Ukraine
The Russian invasion of Ukraine could have a negative impact on
Getinge Group’s financial results and financial position. Currently,
it is not possible to assess the consequenses of the conflict for
Getinge.
The Group’s net sales in Russia and Ukraine during 2021 was
approximately 1% and the equity was less than 1% of the Group’s
total equity.
2021 ANNUAL REPORT
130
Annual Report Notes
NOTE
34
Capitalized development costs
SEK M 2021 2020
Research and development costs, gross -1,197 -1,462
Capitalized development costs 346 429
Research and development costs, net -851 -1,033
NOTE
33
Supplementary disclosure to cash flow statement
Cash and cash equivalents, SEK M 2021 2020
Investments 0 2,081
Cash and bank balances 4,075 3,975
Total 4,076 6,056
Adjustments for items not included in cash flow, SEK M 2021 2020
Gain(-)/loss(+) from divestment/disposal of non-current assets -85 32
Write-down of inventories – 102
Write-down of operating receivables – 88
Changes in provisions, restored(-)/added(+) 601 -183
Other -56 21
Total 460 60
Interest paid and received, SEK M 2021 2020
Interest received 10 5
Interest paid -161 -265
Total -151 -260
During the year, Getinge received SEK 50 M (45) in governme-
nt grants, of which SEK 5 M (27) was related to the outbreak of
COVID-19. Getinge has also during the year repaid government
grants and the total amount of received and refunded contribu-
tions related to COVID-19 therefore amounted to net of
SEK -6 M (27). Grants received amounted to SEK 5 M (27) and
repaid amounted to SEK -11 M (0), of which SEK -4 M has been re-
ported in the income statment. The corona related grants mainly
concerned allowance for short-term work and compensation for
sick leave costs from authorities in several dierent countries.
Total government grants reported in the income statement
amounted to SEK 28 M (42), of which SEK 30 M (21) was reported
as other operating income and SEK -6 M (0) as other operating
expenses and SEK 4 M (21) reported as a reduction in the costs
related to the grants. In addition to these, government grants
have been received net of SEK 11 M (3) which reduced the carrying
amount of the assets to which the grants were related.
NOTE
35
Government grants
2021 ANNUAL REPORT
131
Financial statements Annual Report
SEK M Note 2021 2020
Net profit for the year 1,600 116
Other comprehensive income – –
Comprehensive income for the year 1,600 116
Parent Company’s statement
of comprehensive income
Parent Company’s income statement
SEK M Note 2021 2020
Administrative expenses 2, 16, 17 -31 -58
Other operating income – 38
Operating result -31 -20
Result from participations in Group companies 5 1,820 308
Interest income and other similar income 1 1
Interest expenses and other similar expenses 6 -263 -394
Profit aer financial items 1,527 -105
Appropriations 7 102 243
Taxes 8 -29 -22
Net profit for the year 1,600 116
2021 ANNUAL REPORT
132
Annual Report Financial statements
SEK M Note 2021 2020
ASSETS
Non-current assets
Intangible assets 3 8 24
Tangible assets 4 4 6
Participations in Group companies 9 28,795 28,090
Deferred tax assets 94 106
Total non-current assets 28,901 28,226
Current assets
Accounts receivable 233 295
Current tax assets 5 5
Other receivables 10 6
Prepaid expenses and accrued income 21 17
Cash and cash equivalents 12 1,330 950
Total current assets 1,599 1,273
TOTAL ASSETS 30,500 29,499
EQUITY AND LIABILITIES
Equity 18
Restricted equity
Share capital 136 136
Statutory reserve 2,525 2,525
Non-restricted equity
Share premium reserve 4,264 4,264
Retained earnings 13,277 13,978
Net profit for the year 1,600 116
Total equity 21,802 21,019
Long-term liabilities
Interest-bearing long-term liabilities 10, 12 1,170 –
Other provisions, long-term 15 32
Total long-term liabilities 1,185 32
Current liabilities
Interest-bearing current liabilities 11, 12 – 1,248
Accounts payable 30 23
Liabilities to Group companies 7,238 6,932
Other liabilities 3 4
Accrued expenses and deferred income 13 242 241
Total current liabilities 7,513 8,448
TOTAL EQUITY AND LIABILITIES 30,500 29,499
Refer to Note 14 for information concerning pledged assets and contingent liabilities.
Parent Company’s balance sheet
2021 ANNUAL REPORT
133
Financial statements Annual Report
Changes in Parent Company equity
Restricted equity Non-restricted equity
SEK M Share capital¹⁾
Statutory
reserve
Share
premium
reserve
Retained
earnings and
net profit for
the year Total equity
Opening balance at January 1, 2020 136 2,525 4,264 14,387 21,312
Comprehensive income for the year
– – – 116 116
Dividend – – – -409 -409
Closing balance at December 31, 2020 136 2,525 4,264 14,094 21,019
Opening balance at January 1, 2021 136 2,525 4,264 14,094 21,019
Comprehensive income for the year – – – 1,600 1 600
Dividend – – – -817 -817
Closing balance at December 31, 2021 136 2,525 4,264 14,877 21,802
1) The share capital consists of 18,217,200 Class A shares and 254,152,373 Class B shares. Each share’s quotient value is SEK 0.50 and all shares carry equal rights to dividends.
One Class A share carries ten votes and one Class B share carries one vote.
2021 ANNUAL REPORT
134
Annual Report Financial statements
Parent Company’s cash flow statement
SEK M Note 2021 2020
Operating activities
Operating result -31 -20
Adjustments for items not included in cash flow -4 14
Interest received and similar items 1 1
Dividend received 2,191 712
Interest paid and similar items -264 -351
Taxes paid -17 -19
Cash flow before changes in working capital 1,876 337
Changes in working capital
Current receivables -87 77
Current liabilities 314 3,718
Cash flow from operating activities 2,103 4,132
Investing activities
Divestment of fixed assets 3 5 –
Investments in subsidiaries -2,363 -63
Repayment of shareholders' contribution 1,287 –
Cash flow from investing activities -1,071 -63
Financing activities
Raising of loans 12 1,170 –
Repayment of loans 12 -1,248 -3,203
Dividend paid -817 -409
Group contributions received 243 493
Cash flow from financing activities -652 -3,119
Cash flow for the year 380 950
Cash and cash equivalents at the beginning of the year 950 0
Cash flow for the year 380 950
Cash and cash equivalents at year-end 1,330 950
2021 ANNUAL REPORT
135
Notes Annual Report
The financial statements of the Parent Company were prepared in
accordance with the Swedish Annual Accounts Act and the Swed-
ish Financial Reporting Board’s recommendation RFR 2, Reporting
of Legal Entities. In accordance with the regulations stipulated
in RFR 2, in the annual financial statements for a legal entity, the
Parent Company is to apply all of the IFRS/IAS regulations and
statements that have been endorsed by the EU where possible
within the framework of the Swedish Annual Accounts Act and
with consideration of the link between accounting and taxation.
The recommendation specifies which exceptions and additions
are to be made from IFRS/IAS. Provisions conforming to IFRS/
IAS are stated in Note 1 Accounting policies, for the consolidated
financial statements.
The Parent Company applies the accounting policies detailed for
the Group with the exception of the following:
Remuneration to employees
The Parent Company complies with the Swedish Pension Obliga-
tions Vesting Act and directives from the Swedish Financial Super-
visory Authority when calculating defined-benefit pension plans.
Financial derivatives
For derivatives, the exemption in RFR 2 pertaining to IFRS 9 is
applied, meaning that measurement and recognition of financial
instruments is based on cost pursuant to the Swedish Annual
Accounts Act.
Shares and participations
Subsidiaries are recognized in accordance with the acquisition
method, implying that holdings are recognized at cost in the bal-
ance sheet less any impairment. Dividends from subsidiaries are
recognized as dividend income.
Group contributions
Group contributions received and paid are recognized as appropri-
ations according to the alternative rule in RFR 2.
Operational leases
All leasing agreements in the Parent Company are recognized as
operational leases.
NOTE
2
Depreciation/amortization according to plan
SEK M 2021 2020
Equipment, tools, fixtures and fiings -2 -1
Intangible assets -11 -10
Total -13 -11
NOTE
3
Intangible assets
Intangible assets, SEK M 2021 2020
Opening cost 53 53
Sales/disposals -18 –
Closing accumulated cost 35 53
Opening amortization -29 -19
Amortization for the year -11 -10
Sales/disposals 13 –
Closing accumulated amortization -27 -29
Closing carrying amount 8 24
NOTE
1
Parent Company's accounting policies
2021 ANNUAL REPORT
136
Annual Report Notes
NOTE
5
Result from participations in Group companies
SEK M 2021 2020
Dividends from Group companies 2,188 712
Liquidation gain 3 –
Impairment of shares in subsidiaries -371 -404
Total 1,820 308
NOTE
6
Interest expenses and other similar expenses
SEK M 2021 2020
Interest expenses to Group companies -252 -143
Interest expenses -10 -39
Currency losses – -206
Other -1 -6
Total -263 -394
NOTE
4
Tangible assets
Equipment, tools, fixtures and fiings, SEK M 2021 2020
Opening cost 11 11
Sales/disposals -2 –
Closing accumulated cost 9 11
Opening depreciation -5 -4
Depreciation for the year -2 -1
Sales/disposals 2 –
Closing accumulated depreciation -5 -5
Closing carrying amount 4 6
2021 ANNUAL REPORT
137
Notes Annual Report
NOTE
8
Taxes
SEK M 2021 2020
Current tax -17 -16
Deferred tax -12 -6
Total -29 -22
The relationship between the year’s tax expense and the recognized profit before tax, SEK M
Recognized profit before tax 1,629 138
Tax according to current tax rate in Sweden (20.6%) -336 -30
Tax effect of non-deductible costs -132 -130
Tax effect of non-taxable income 456 166
Foreign withholding tax -17 -16
Adjustment of tax expenses from earlier years – -12
Recognized tax expense -29 -22
NOTE
7
Appropriations
SEK M 2021 2020
Group contributions received 102 243
Total 102 243
2021 ANNUAL REPORT
138
Annual Report Notes
Subsidiaries of sub-groups
Getinge Group, with operations
in many countries, is organized
into sub-groups in several
categories, and accordingly,
the legal structure cannot be
reflected in a simpler manner
in a tabular presentation.
Group companies directly
or indirectly owned by Getinge
AB are specified below. The
ownership interest is 100%
except in cases where the
ownership interest is stated in
parentheses.
Sweden
• Getinge Finance Holding AB,
556473-1700, Gothenburg
• Arjo Ltd Med. AB,
556473-1718, Gothenburg
• Getinge Disinfection AB,
556042-3393, Halmstad
• Getinge Logistics AB,
556547-8798, Halmstad
• Getinge International AB,
556547-8780, Halmstad
• Getinge Sterilization AB,
556031-2687, Halmstad
• Getinge Sverige AB,
556509-9511, Halmstad
• Getinge Treasury AB,
556535-6309, Gothenburg
• Maquet Critical Care AB,
556604-8731, Solna
• Getinge Business Support
Services AB, 556535-6317,
Gothenburg
• Maquet Nordic AB,
556648-1163, Solna
Australia
• Getinge Australia Pty Ltd
Belgium
• Getinge Belgium NV
Brazil
• Getinge do Brasil
Equipamentos Médicos Ltda
Colombia
• Getinge Colombia SAS
Denmark
• Getinge Cetrea A/S
• Getinge Danmark A/S
• Getinge IT Solutions ApS
• Getinge Water Systems A/S
• Polystan A/S
Finland
• Getinge Finland Oy Ab
• Maquet Finland Oy
France
• Getinge France SAS
• Getinge Infection
Control SAS
• Getinge Life Science France
SAS
• Intervascular SAS
• Maquet SAS
United Arab Emirates
• Getinge Group Middle East
FZ-LLC
Greece
• Getinge/Castle
International Ltd
Hong Kong
• Getinge Group Hong Kong Ltd
India
• Atrium Medical India Pvt Ltd
• Getinge India Pvt Ltd
• Getinge Medical India Pvt Ltd
NOTE
9
Participations in Group companies
Parent Company’s holdings Reg. office
Swedish
Corp. Reg. No.
No. of
shares
Percentage
holding
Carrying
amount
2021, SEK M
Carrying
amount
2020, SEK M
Getinge Finance Holding AB Gothenburg 556473-1700 23,062,334 100 9,672 10,959
Getinge Sterilization AB Halmstad 556031-2687 50,000 100 623 623
Getinge Business Support Services AB Gothenburg 556535-6317 1,000 100 1,481 1,481
Getinge Disinfection AB Halmstad 556042-3393 25,000 100 118 118
Getinge Australia Pty Ltd Australia 56,975 100 72 72
Getinge Danmark A/S Denmark 10,000 100 41 41
Getinge IT Solutions ApS Denmark 533,000 100 27 27
Getinge Finland Oy Ab Finland 15 100 0 0
Getinge Infection Control SAS France 1,666,712 85 698 698
Getinge/Castle International Ltd Greece 100 100 0 0
Getinge Treasury Ireland DAC Ireland 2 100 216 583
Getinge Norge AS Norway 4,500 100 4 4
Neuromedica SA Spain 40,000 100 16 16
Getinge Shared Services Sp. z o.o. Poland 60,600 100 29 33
Getinge Holding USA, Inc. USA 10,000 100 15,542 13,179
Getinge Group Shared Services CR Sociedad Costa Rica – – – 0
Getinge Polska Sp. z o.o. Polen 2,109 35 13 13
Getinge Group Japan KK Japan 800 100 243 243
Total carrying amount 28,795 28,090
The Parent Company’s holding of shares in the subsidiaries constitutes the entire capital of the respective company,
which also corresponds to 100% of the voting rights, unless otherwise stated.
2021 ANNUAL REPORT
139
Notes Annual Report
Ireland
• Getinge Treasury Ireland
DAC
• Getinge Ireland Ltd.
• Quadralene International
Ltd.
Italy
• Getinge Italia Srl
Japan
• Getinge Group Japan KK
Canada
• Getinge Canada Ltd
China
• Getinge (Shanghai) Trading
Co., Ltd
• Maquet (Shanghai) Medical
Equipment Co., Ltd
• Maquet (Suzhou) Co., Ltd
• Suzhou Maquet Medical
Engineering Co., Ltd
Mexico
• Maquet Mexicana, S. de R.L.
de C.V.
Netherlands
• Getinge Holding Nether-
lands B.V.
• Datascope B.V.
• Getinge Netherlands B.V.
• Maquet Verwaltungs B.V.
• Applikon Biotechnology B.V.
Norway
• Getinge Norge AS
Poland
• Getinge Polska Sp. z o.o.
• Getinge IC Production
Poland Sp. z o.o.
• Getinge Shared Services
Sp. z o.o.
Portugal
• Getinge Group Portugal
Unipessoal Lda
Russia
• Maquet LLC
Switzerland
• Getinge Schweiz AG
Serbia
• Getinge Group South East
Europe d.o.o. Beograd
Singapore
• Getinge Singapore Pte. Ltd.
• Getinge South East Asia Pte.
Ltd.
Slovakia
• Getinge Slovakia s.r.o.
Spain
• Getinge Group Spain SL
• Neuromedica SA
UK
• Getinge IT Solutions Ltd
• Getinge Extended Care UK
Ltd
• Getinge Holding Ltd
• Getinge Production UK Ltd
• Getinge UK Ltd
• Getinge Ltd
• Scantrack Healthcare Ltd
• Quadralene Holdings Ltd
• Quadralene Ltd
• Biocleanse Ltd
• Bioclear Ltd
• Dentisan Ltd
• Teknon Ltd
South Africa
• Maquet Southern Africa
(Pty) Ltd
South Korea
• Getinge Medical Korea Co.,
Ltd
Taiwan
• Getinge Group Taiwan Co.,
Ltd.
Thailand
• Getinge (Thailand) Co., Ltd.
(49 %)
Czech Republic
• Getinge Czech Republic,
s.r.o.
Türkiye
• Getinge Stericool Medikal
Aletler San. Ve Tic. A.Ş.
• Maquet Cardiopulmonary
Medikal Teknik San.Tic.Ltd.
Şti.
• Getinge Medikal Sistemler
San. ve Tic. A.Ş.
Germany
• Getinge Holding GmbH
• Getinge Vertriebs Holding
GmbH
• Maquet Cardiopulmonary
GmbH
• Getinge Financial Services
GmbH
• Maquet GmbH
• Getinge Holding B.V. & Co KG
• MediKomp GmbH
• Maquet Medical Systems AG
• Getinge Deutschland GmbH
• Getinge IT Solutions GmbH
• Pulsion Medical Systems SE
(80 %)
Ukraine
• Maquet Ukraine LLC
USA
• Atrium Medical Corporation
• Getinge USA Sales, LLC
• Genisphere, Inc.
• Getinge Group Logistics
Americas, LLC
• Getinge Holding USA, Inc.
• Getinge Sourcing LLC
• Lancer Sales USA Inc
• Maquet Cardiovascular LLC
• Maquet Cardiovascular US
Sales, LLC
• Datascope Corp.
• Steritec Products Mfg. Co.,
Inc.
• Applikon Biotechnology Inc.
• Lunatronic Incorporated
• AFx LLC
• CardioThoracic Systems LLC
• Origin Medsystems LLC
• Talis Clinical LLC
Vietnam
• Getinge Vietnam Company
Ltd
Austria
• Getinge Österreich GmbH
2021 ANNUAL REPORT
140
Annual Report Notes
NOTE
10
Interest-bearing long-term liabilities
SEK M 2021 2020
Liabilities to credit institutions 1,170 –
Total 1,170 –
All loans fall due for payment within five years.
NOTE
11
Interest-bearing current liabilities
SEK M 2021 2020
Liabilities to credit institutions – 1,248
Total – 1,248
NOTE
12
Parent Company’s net interest-bearing debt
SEK M 2021 Change 2020
Interest-bearing current liabilities – -1 248 1,248
Interest-bearing long-term liabilities 1,170 1,170 –
Less cash and cash equivalents -1 330 -380 -950
Total -160 -458 298
SEK M
Cash and cash
equivalents
Interest-
bearing liabilities Total
Net debt at January 1, 2020 0 4,392 4,392
Cash flow affecting net debt -950 -3,203 -4,153
Exchange-rate differences 0 59 59
Net debt at December 31, 2020 -950 1,248 298
Net debt at January 1, 2021 -950 1,248 298
Cash flow affecting net debt -380 -78 -458
Exchange-rate differences 0 – 0
Net debt at December 31, 2021 -1,330 1,170 -160
NOTE
13
Accrued expenses and deferred income
SEK M 2021 2020
Salaries 96 102
Social security expenses 129 121
Interest expenses 1 2
Other 16 16
Total 242 241
2021 ANNUAL REPORT
141
Notes Annual Report
NOTE
14
Pledged assets and contingent liabilities
Pledged assets
The Parent Company had no pledged assets.
Contingent liabilities, SEK M 2021 2020
Guarantees FPG/PRI 294 289
Other guarantees 785 857
Total 1,079 1,146
NOTE
15
Average number of employees
2021 2020
Men 39 37
Women 39 38
Total 78 75
Distribution of senior executives at the closing date 2021 2020
Women:
Board members of the Parent Company 4 4
Other members of the company’s management, incl. CEO 2 2
Men:
Board members of the Parent Company 8 8
Other members of the company’s management, incl. CEO 4 4
NOTE
16
Employee costs
2021, SEK M
Board
and CEO Other Total
Salaries and remuneration -58 -105 -163
Social security expenses -20 -48 -68
Pension expenses -9 -24 -33
Total -87 -177 -264
2020, SEK M
Board
and CEO Other Total
Salaries and remuneration -65 -120 -185
Social security expenses -22 -47 -69
Pension expenses -9 -33 -42
Total -96 -200 -296
2021 ANNUAL REPORT
142
Annual Report Notes
NOTE
19
Events aer the end of the fiscal year
No significant events occurred aer the end of the fiscal year.
NOTE
18
Proposed appropriation of profit
The following non-restricted equity in the Parent Company is at the disposal of the Annual General Meeting, SEK M:
Share premium reserve 4,264
Retained earnings 13,277
Net profit for the year 1,600
Total 19,141
The Board and CEO propose that a dividend of SEK 4.00 per share shall be distributed to shareholders 1,089
to be carried forward 18,052
Total 19,141
NOTE
17
Auditing
Fee to PwC, SEK M 2021 2020
Auditing assignment -9 -15
Auditing activities other than auditing assignments -0 -0
Other services -10 -1
Total -19 -16
Öhrlings PricewaterhouseCoopers AB has the auditing assignment
for the Parent Company. Auditing assignments refer to auditing of
the financial statements, statutory accounts and other required
legal audit. Auditing activities other than auditing assignments in-
clude mainly the review of interim reports as well as other services
related to financial reporting. Other services mainly pertain to
services in connection with acquisitions. Of other services SEK 3 M
(1) was aributable to the registered auditing firm Öhrlings Pricewa-
terhouseCoopers AB.
2021 ANNUAL REPORT
143
Auditor's report Annual Report
Auditor's Report
To the general meeting of the shareholders of Getinge AB (publ),
corporate identity number 556408-5032
Report on the annual accounts and
consolidated accounts
Opinions
We have audited the annual accounts and consolidated accounts
of Getinge AB (publ) for the year 2021. The annual accounts and
consolidated accounts of the company are included on pages
76-142 in this document with the exception of the Remuneration
Report on pages 86-89.
In our opinion, the annual accounts have been prepared in
accordance with the Annual Accounts Act and present fairly, in
all material respects, the financial position of the parent com-
pany as of 31 December 2021 and its financial performance and
cash flow for the year then ended in accordance with the Annual
Accounts Act. The consolidated accounts have been prepared in
accordance with the Annual Accounts Act and present fairly, in
all material respects, the financial position of the group as of 31
December 2021 and their financial performance and cash flow for
the year then ended in accordance with International Financial
Reporting Standards (IFRS), as adopted by the EU, and the Annual
Accounts Act. The statutory administration report is consistent
with the other parts of the annual accounts and consolidated
accounts.
We therefore recommend that the general meeting of share-
holders adopts the income statement and balance sheet for the
parent company and the group.
Our opinions in this report on the annual accounts and consol-
idated accounts are consistent with the content of the additional
report that has been submied to the parent company's audit
commiee in accordance with the Audit Regulation (537/2014)
Article 11.
Basis for Opinions
We conducted our audit in accordance with International Stan-
dards on Auditing (ISA) and generally accepted auditing stan-
dards in Sweden. Our responsibilities under those standards are
further described in the Auditor’s Responsibilities section. We are
independent of the parent company and the group in accordance
with professional ethics for accountants in Sweden and have
otherwise fulfilled our ethical responsibilities in accordance with
these requirements. This includes that, based on the best of our
knowledge and belief, no prohibited services referred to in the
Audit Regulation (537/2014) Article 5.1 have been provided to the
audited company or, where applicable, its parent company or its
controlled companies within the EU.
We believe that the audit evidence we have obtained is su-
cient and appropriate to provide a basis for our opinions.
Our audit approach
Audit scope
We designed our audit by determining materiality and assessing
the risks of material misstatement in the consolidated financial
statements. In particular, we considered where management
made subjective judgements; for example, in respect of significant
accounting estimates that involved making assumptions and
considering future events that are inherently uncertain. As in all
of our audits, we also addressed the risk of management override
of internal controls, including among other maers consideration
of whether there was evidence of bias that represented a risk of
material misstatement due to fraud.
We tailored the scope of our audit in order to perform sucient
work to enable us to provide an opinion on the consolidated
financial statements as a whole, taking into account the structure
of the group, the accounting processes and controls, and the
industry in which the group operates.
Materiality
The scope of our audit was influenced by our application of materi-
ality. An audit is designed to obtain reasonable assurance whether
the financial statements are free from material misstatement.
Misstatements may arise due to fraud or error. They are considered
material if individually or in aggregate, they could reasonably be
expected to influence the economic decisions of users taken on
the basis of the consolidated financial statements.
Based on our professional judgement, we determined certain
quantitative thresholds for materiality, including the overall
group materiality for the consolidated financial statements as a
whole. These, together with qualitative considerations, helped
us to determine the scope of our audit and the nature, timing
and extent of our audit procedures and to evaluate the eect of
misstatements, both individually and in aggregate on the financial
statements as a whole.
Key audit maers
Key audit maers of the audit are those maers that, in our pro-
fessional judgement, were of most significance in our audit of the
annual accounts and consolidated accounts of the current period.
These maers were addressed in the context of our audit of, and in
forming our opinion thereon, the annual accounts and consolidat-
ed accounts as a whole, but we do not provide a separate opinion
on these maers.
2021 ANNUAL REPORT
144
Annual Report Auditor's report
In our audit, we have evaluated the calculation model applied by
management.
We have reconciled and critically tested essential variables
against budget and strategic plan for the Company. We have
analyzed the accuracy on how previous years assumptions have
been met and assessed any adjustments to assumptions com-
pared to previous year, as a result from changes in the business
and external factors.
We have tested the sensitivity analysis for key variables in
order to assess the risk of need for impairment.
We have also assessed the correctness of the disclosures
included in the consolidated accounts.
Revenue recognition
With reference to Note 1 and Note 2.
Sales of the group include products, services and rental. Sales
are primarily made via the global sales organization of the group.
Revenue recognition represent a significant area in our audit
given its importance to the financial reporting of the group.
Specific aention is given to that revenue transactions rep-
resent valid revenue transactions in accordance with account-
ing framework and that these are accounted for in the proper
period. The group have routines and procedures to monitor and
secure that revenue recognition is made in the right period and
with the right amount.
We have reviewed the system and procedures related to the
revenue process and evaluated that the accounting principles of
the group are consistent to IFRS.
Our audit and procedures include sample testing of revenue
transactions in local entities to supporting documentation such
as customer agreement, sales order, delivery related documen-
tation, customer invoices, price lists and customer confirmation
in combination with or alternatively to verification of subsequent
payments.
We have evaluated manual transactions using computer
assisted techniques and specifically any adjustments of revenue
recognition.
We have additionally assessed the correctness of the disclosu-
res related to account’s receivables included in the consolidated
accounts.
Accounting for provisions relating to legal exposures
With reference to Note 1 and Note 22.
Provisions relating legal exposures comprise a significant area in
the Group’s financial reports.
The main provision relates to expected costs associated with
surgical mesh product liability claims previously produced by
the Group. The assessment of relevant provisions for legal expo-
sures is inherently associated with a large degree of uncertainty
and subjectivity.
In our audit, we have particularly focused our audit activities
on the assessment of the provisions related to surgical mesh
product liability claims.
We have received Management’s calculations for exposures
related to surgical mesh product liability claim and received
statements from external legal advisors to relevant maers. We
have assessed the reasonability in Management’s calculations
taking into consideration information from legal advisors.
We have additionally assessed the disclosures of the
consolidated accounts.
Key audit maers How our audit addressed the Key audit maer
Valuation of intangible assets
With reference to Note 1 and Note 12.
Goodwill and other intangible assets with an indefinite useful
life represents a significant part of the Balance Sheet of Getinge.
The company performs an impairment assessment of the assets
based on a calculation of the discounted cash flow for the cash
generating units in which goodwill and other intangible assets
are reported.
This impairment test is based on a high level of judgments
and assumptions regarding future cash flows. Information
is provided in Notes 1 and 12 as to how the company’s man-
agement has undertaken its assessments, and also provides
information on important assumptions and sensitivity analyses.
Key variables in the test are growth rate, profit margins and dis-
count factor (cost of capital). It is presented that no impairment
requirement has been identified based on the assumptions
undertaken.
2021 ANNUAL REPORT
145
Auditor's report Annual Report
Other Information than the annual accounts
and consolidated accounts
This document also contains other information than the annual
accounts and consolidated accounts and is found on pages 1–33
and 148–163, the Corporate Governance Report on pages 34–58,
the Remuneration Report on pages 86–89 and the Sustainability
Report on pages 60–73. The Board of Directors and the Chief Exec-
utive Ocer are responsible for this other information.
Our opinion on the annual accounts and consolidated accounts
does not cover this other information and we do not express any
form of assurance conclusion regarding this other information.
In connection with our audit of the annual accounts and
consolidated accounts, our responsibility is to read the informa-
tion identified above and consider whether the information is
materially inconsistent with the annual accounts and consoli-
dated accounts. In this procedure we also take into account our
knowledge otherwise obtained in the audit and assess whether
the information otherwise appears to be materially misstated.
If we, based on the work performed concerning this informa-
tion, conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing
to report in this regard.
Responsibilities of the Board of Directors
and the Chief Executive Officer
The Board of Directors and the Chief Executive Ocer are respon-
sible for the preparation of the annual accounts and consolidated
accounts and that they give a fair presentation in accordance
with the Annual Accounts Act and, concerning the consolidated
accounts, in accordance with IFRS as adopted by the EU. The Board
of Directors and the Chief Executive Ocer are also responsible for
such internal control as they determine is necessary to enable the
preparation of annual accounts and consolidated accounts that
are free from material misstatement, whether due to fraud or error.
In preparing the annual accounts and consolidated accounts,
The Board of Directors and the Chief Executive Ocer are respon-
sible for the assessment of the company's and the group's ability
to continue as a going concern. They disclose, as applicable, mat-
ters related to going concern and using the going concern basis
of accounting. The going concern basis of accounting is however
not applied if the Board of Directors and the Chief Executive Of-
ficer intend to liquidate the company, to cease operations, or has
no realistic alternative but to do so.
The Audit Commiee shall, without prejudice to the Board
of Director’s responsibilities and tasks in general, among other
things oversee the company’s financial reporting process.
Auditor’s responsibility
Our objectives are to obtain reasonable assurance about whether
the annual accounts and consolidated accounts as a whole are
free from material misstatement, whether due to fraud or error,
and to issue an auditor’s report that includes our opinions. Rea-
sonable assurance is a high level of assurance, but is not a guaran-
tee that an audit conducted in accordance with ISAs and generally
accepted auditing standards in Sweden will always detect a
material misstatement when it exists. Misstatements can arise
from fraud or error and are considered material if, individually or in
the aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of these annual
accounts and consolidated accounts.
A further description of our responsibility for the audit of the
annual accounts and consolidated accounts is available on
Revisorsinspektionen’s website: www.revisorsinspektionen.se/
revisornsansvar. This description is part of the auditor´s report.
Report on other legal and regulatory requirements
The auditor’s examination of the administration of the company
and the proposed appropriations of the company’s profit or loss
Opinions
In addition to our audit of the annual accounts and consolidated
accounts, we have also audited the administration of the Board of
Directors and the Chief Executive Ocer of Getinge AB (publ) for
the year 2021 and the proposed appropriations of the company’s
profit or loss.
We recommend to the general meeting of shareholders that
the profit be appropriated in accordance with the proposal in
the statutory administration report and that the members of the
Board of Directors and the Chief Executive Ocer be discharged
from liability for the financial year.
Basis for Opinions
We conducted the audit in accordance with generally accepted
auditing standards in Sweden. Our responsibilities under those
standards are further described in the Auditor’s Responsibilities
section. We are independent of the parent company and the group
in accordance with professional ethics for accountants in Sweden
and have otherwise fulfilled our ethical responsibilities in accor-
dance with these requirements.
We believe that the audit evidence we have obtained is su-
cient and appropriate to provide a basis for our opinions.
Responsibilities of the Board of Directors
and the Chief Executive Officer
The Board of Directors is responsible for the proposal for ap-
propriations of the company’s profit or loss. At the proposal of a
dividend, this includes an assessment of whether the dividend is
justifiable considering the requirements which the company's and
the group's type of operations, size and risks place on the size of
the parent company's and the group’ equity, consolidation require-
ments, liquidity and position in general.
The Board of Directors is responsible for the company’s
organization and the administration of the company’s aairs.
This includes among other things continuous assessment of the
company's and the group's financial situation and ensuring that
the company´s organization is designed so that the accounting,
management of assets and the company’s financial aairs other-
wise are controlled in a reassuring manner. The Chief Executive
Ocer shall manage the ongoing administration according to the
Board of Directors’ guidelines and instructions and among other
maers take measures that are necessary to fulfill the company’s
accounting in accordance with law and handle the management
of assets in a reassuring manner.
Auditor’s responsibility
Our objective concerning the audit of the administration, and
thereby our opinion about discharge from liability, is to obtain
audit evidence to assess with a reasonable degree of assurance
whether any member of the Board of Directors and the Chief Exec-
utive Ocer in any material respect:
• has undertaken any action or been guilty of any omission which
can give rise to liability to the company, or
• in any other way has acted in contravention of the Companies
Act, the Annual Accounts Act or the Articles of Association.
2021 ANNUAL REPORT
146
Annual Report Auditor's report
Our objective concerning the audit of the proposed appropriations
of the company’s profit or loss, and thereby our opinion about this,
is to assess with reasonable degree of assurance whether the
proposal is in accordance with the Companies Act.
Reasonable assurance is a high level of assurance, but is not a
guarantee that an audit conducted in accordance with generally
accepted auditing standards in Sweden will always detect actions
or omissions that can give rise to liability to the company, or that
the proposed appropriations of the company’s profit or loss are
not in accordance with the Companies Act.
A further description of our responsibility for the audit of the
administration is available on Revisorsinspektionen’s website:
www.revisorsinspektionen.se/revisornsansvar. This description is
part of the auditor’s report.
The auditor’s examination of the Esef-report
Opinion
In addition to our audit of the annual accounts and consolidated
accounts, we have also examined that the Board of Directors and
the Chief Executive Ocer have prepared the annual accounts
and consolidated accounts in a format that enables uniform elec-
tronic reporting (the Esef report) pursuant to Chapter 16, Section
4(a) of the Swedish Securities Market Act (2007:528) for Getinge
AB (publ) for the financial year 2021.
Our examination and our opinion relate only to the statutory
requirements.
In our opinion, the Esef report #[569cfad5df787c290ef-
7c05a4bb3d3c269014e8e3f9f8d709a039b63cbdb28e2] has
been prepared in a format that, in all material respects, enables
uniform electronic reporting.
Basis for Opinions
We have performed the examination in accordance with FAR’s
recommendation RevR 18 Examination of the Esef report. Our
responsibility under this recommendation is described in more
detail in the Auditors’ responsibility section. We are independent
of Getinge AB (publ) in accordance with professional ethics for
accountants in Sweden and have otherwise fulfilled Our ethical
responsibilities in accordance with these requirements.
We believe that the evidence we have obtained is sucient
and appropriate to provide a basis for our opinion.
Responsibilities of the Board of Director's
and the Chief Executive Office
The Board of Directors and the Chief Executive Ocer are respon-
sible for ensuring that the Esef report has been prepared in accor-
dance with the Chapter 16, Section 4(a) of the Swedish Securities
Market Act (2007:528), and for such internal control that the Board
of Directors and the Chief Executive Ocer determine is neces-
sary to prepare the Esef report without material misstatements,
whether due to fraud or error.
Auditor’s responsibility
Our responsibility is to form an opinion with reasonable assurance
whether the Esef report is in all material respects prepared in a
format that meets the requirements of Chapter 16, Section 4(a)
of the Swedish Securities Market Act (2007:528), based on the
procedures performed.
RevR 18 requires us to plan and execute procedures to achieve
reasonable assurance that the Esef report is prepared in a format
that meets these requirements.
Reasonable assurance is a high level of assurance, but it is not
a guarantee that an engagement carried out according to RevR 18
and generally accepted auditing standards in Sweden will always
detect a material misstatement when it exists. Misstatements can
arise from fraud or error and are considered material if, individually
or in aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of the ESEF report.
The audit firm applies ISQC 1 Quality Control for Firms that
Perform Audits and Reviews of Financial Statements, and other
Assurance and Related Services Engagements and accordingly
maintains a comprehensive system of quality control, including
documented policies and procedures regarding compliance with
professional ethical requirements, professional standards and
legal and regulatory requirements.
The reasonable assurance engagement involves obtaining
evidence, through various procedures, that the Esef report has
been prepared in a format that enables uniform electronic re-
porting of the annual accounts. The procedures selected depend
on the auditor’s judgment, including the assessment of the risks
of material misstatement in the report, whether due to fraud or
error. In carrying out this risk assessment, and in order to design
procedures that are appropriate in the circumstances, the auditor
considers those elements of internal control that are relevant to
the preparation of the Esef report by the Board of Directors and
the Chief Executive Ocer, but not for the purpose of expressing
an opinion on the eectiveness of those internal controls. The
reasonable assurance engagement also includes an evaluation of
the appropriateness and reasonableness of assumptions made by
the Board of Directors and the Chief Executive Ocer.
The procedures mainly include a technical validation of the Esef
report, i.e. if the file containing the Esef report meets the techni-
cal specification set out in the Commission’s Delegated Regula-
tion (EU) 2019/815 and a reconciliation of the Esef report with the
audited annual accounts and consolidated accounts.
Furthermore, the procedures also include an assessment of
whether the Esef report has been marked with iXBRL which
enables a fair and complete machine-readable version of the
consolidated statement of financial performance, statement of
financial position, statement of changes in equity and the state-
ment of cash flow.
Öhrlings PricewaterhouseCoopers AB, was appointed auditor of
Getinge AB (publ) by the general meeting of the shareholders on
the 20 April 2021 and has been the company’s auditor since the 17
April 2008.
Göteborg 30 March 2022
Öhrlings PricewaterhouseCoopers AB
Peter Nyllinge
Authorized Public Accountant
Auditor in charge
Karin Olsson
Authorized Public Accountant
Other information
148 The Getinge Share
150 Multi-year overview
154 Reconciliation of alternative performance measures
156 Group companies
160 Definitions
162 Annual General Meeting and Nomination Commiee
162 Financial information
163 Reading guide and distribution policy
163 Contact
Contents
2021 ANNUAL REPORT
148
Other information The Getinge share
The Getinge share
Getinge’s Class B share has been listed on Nasdaq Stockholm AB since 1993. The share is
included in the Nasdaq Nordic Large Cap segment and the OMXS30 index. At December 31,
2021, the number of shareholders was 54,567 and the percentage of foreign-owned shares
amounted to 43.7%. Institutional owners accounted for 58.6% of the share capital, of which
Swedish institutional owners accounted for 27.8 percentage points.
Share trend, liquidity and dividend policy
At year-end, Getinge’s share was listed at SEK 395.1, which was an
increase of 105.7% (9) during the year. The highest price paid in 2021
was SEK 429.4 (November 15) and the lowest was SEK 192.5 (January
7). At year-end, market capitalization amounted to SEK 107.6 billion.
During the year, 208.9 million shares were traded (330.5).
At year-end 2021, share capital in Getinge totaled
SEK 136,184,786.50 distributed among 272,369,573 shares. All
shares carry the same dividend entitlement. One Class A share
carries ten votes and one Class B share carries one vote. The
Board of Directors of Getinge has adopted a dividend policy en-
tailing that future dividends will be adjusted in line with Getinge’s
profit level, financial position and future development potential.
The aim is for the dividend to correspond to 30–50% of net profit.
Sell-side analysts covering Getinge
AlphaValue, ABG Sundal Collier, Carnegie, Danske Bank,
DNB Markets, Handelsbanken, J.P. Morgan, Kepler Cheuvreux,
Morningstar, Nordea, Pareto Securities, Redburn and SEB Enskilda.
Getinge's peers
Getinge's peers consist of the listed companies named in the
section for each business area in this Annual Report.
Shareholder information
Financial information about Getinge is available on the Group’s
website. Questions about this Annual Report and other financial
communication can be put directly to the investor relations
function of the company.
Getinge as an investment
Long-lasting and close customer relations
Since it was first founded more than 100 years ago, Getinge has
concentrated all its energies on creating customer value. This had
led to close and long-lasting customer relations in which both cus-
tomers and partners in many cases are deeply involved in product
development. This is the key reason for the company’s historic and
future success.
Stronger market positions
Over the years, Getinge has developed leading global technology
together with its partners and customers to enhance the quality,
safety and productivity of health care around the world. This has
resulted in the company commanding leading positions in most
of its product segments. This generates high customer loyalty and
robust protection from competition.
Excellent conditions for growth
Demographic and socio-economic factors show that the need for
eective health care will increase for a long time to come, in all
parts of the world. Getinge has a clear growth strategy which mainly
focuses on product areas with good future prospects regarding
demand and where the company can oer aractive and dieren-
tiated solutions. The strategy includes both organic and acquired
growth, which is facilitated by the solid financial position.
Aractive non-cyclical market
Patient needs for high-quality, safe and sustainable health care are
not aected by economic upturns and downturns, which is why
sales are relatively impervious to economic fluctuations. However,
the conditions for growth could be short term aected in the event
of a major economic crisis. But in such a case the need for sustain-
able health care rises, which benefits Getinge’s solutions.
Continuous improvements of margins and cash flows
Getinge has been implementing an improvement process to
increase the customer value and the sales as well as margins and
cash flows. Progress to date has been successful and continued
positive contributions are expected for several years in the future.
Sustainability a top priority
Getinge operates in an industry in which sustainability is important.
Accordingly, it is a top priority and compasses everything from
environment and quality to ethics and social responsibility.
Getinge believes that this not only contributes to a beer society
but is also an advantage for the company’s business.
Long-term owners
Getinge has a long-term owner base that wants to generate
long-term value for shareholders and other stakeholders, such as
customers, patients and society at large. This provides stability
that helps to create long-term value.
2021 ANNUAL REPORT
149
The Getinge share Other information
Performance in 2021 Performance 2017–2021
0
4
8
12
16
Traded volume per day (millions)
DecNovOctSepAugJulJunMayAprMarFebJan
50
150
250
350
450
OMX Stockholm 30
Getinge B
SEK
Source: FactSet
Traded
volume
(millions)
SEK
Source: FactSet
Traded volume per day (millions)
2017 2018 2019 2020 2021
Traded
volume
(millions)
0
4
8
12
16
20
Antal aktier i 1 000-talSEK
Källa: Bloomberg
Omsa antal aktier i 1 000-tal per månad
2016 2017 2018 2019 2020
0
5 000
10 000
15 000
20 000
25 000
30 000
0
50
100
150
200
250
300
Getinge B
OMX Stockholm 30
0
100
200
300
400
500
OMX Stockholm 30
Getinge B
Ownership structure 2021
Shares
% of
capital
% of
votes
Owner-
ship
Owner-
ship
1–100 0.4% 0.2% 31,291 57.3%
101–200 0.4% 0.2% 6,804 12.5%
201–500 0.9% 0.6% 7,539 13.8%
501–1,000 1.1% 0.7% 4,167 7.6%
1,001–2,000 1.3% 0.8% 2,527 4.6%
2,001–5,000 1.6% 1.0% 1,398 2.6%
5,001–10,000 1.0% 0.6% 386 0.7%
10,001–20,000 0.9% 0.5% 165 0.3%
20,001–50,000 1.1% 0.7% 97 0.2%
50,001–100,000 1.6% 1.0% 59 0.1%
100,001–200,000 1.8% 1.1% 33 0.1%
200,001–500,000 5.2% 3.2% 43 0.1%
500,001–1,000,000 6.2% 3.9% 24 0.0%
1,000,001–2,000,000 6.0% 3.7% 13 0.0%
2,000,001–5,000,000 11.8% 7.4% 11 0.0%
5,000,001–10,000,000 20.1% 12.5% 8 0.0%
10,000,001–20,000,000 0.0% 0.0% 0 0.0%
20,000,001– 27. 5% 54.7% 2 0.0%
Anonymous ownership 11.3% 7.0% N/A N/A
Total 100.0% 100.0% 54,567 100.0%
Getinge’s largest shareholder at December 31, 2021
Class A
shares
Class B
shares
% of
capital
% of
votes
Carl Bennet 18,217,200 36,332,969 20.0% 50.1%
Fjärde AP-fonden 20,287,418 7.4% 4.6%
AMF Pension & Fonder 9,380,924 3.4% 2.1%
Handelsbanken Fonder 7,759,021 2.8% 1.8%
BlackRock 7,24 4,062 2.7% 1.7%
Schroders 6,824,249 2.5% 1.6%
Vanguard 6,774,570 2.5% 1.6%
Norges Bank 5,703,063 2.1% 1.3%
Swedbank Robur Fonder 5,606,780 2.1% 1.3%
Didner & Gerge Fonder 5,348,266 2.0% 1.2%
Other 142,891,051 52.5% 32.7%
Total 18,217,200 254,152,373 100.0% 100.0%
Share capital distribution
Class A Class B Total
No. of shares 18,217,200 254,152,373 272,369,573
No. of votes 182,172,000 254,152,373 436,324,373
% of capital 7% 93% 100%
% of votes 42% 58% 100%
Five largest countries – capital, %
Sweden 56.3%
USA 14.7%
UK 4.8%
Norway 4.0%
France 2.3%
Other owners 6.7%
Anonymous ownership 11.3%
Total 100.0%
Ownership by category – capital, %
Swedish institutional owners 27. 8%
Foreign institutional owners 30.8%
Other owners 22.4%
Swedish individuals 7.7%
Anonymous ownership 11.3%
Total 100.0%
Development of share capital
Transaction
No. of shares
aer transaction
Share capital
aer transaction,
SEK
1990 Formation 500 50,000
1992 Split 50:1, par value SEK 100
to SEK 2
25,000 50,000
1992 Private placement 5,088,400 10,176,800
1993 Private placement 6,928,400 13,856,800
1995 Non-cash issue 15,140,544 30,281,088
1996 Bonus issue 2:1 45,421,632 90,843,264
2001 New issue 1:9 at SEK 100 50,468,480 100,936,960
2003 Split 4:1, par value SEK 2
to SEK 0.50
201,873,920 100,936,960
2008 New issue 1:16 at SEK 120 214,491,404 107,245,520
2009 New issue 1:9 at SEK 83.5 238,323,377 119,161,689
2017 New issue 1:7 at SEK 127 272,369,573 136,184,787
2021 ANNUAL REPORT
150
Other information Multi-year overview
Multi-year overview
Group
1) From 2019, leasing liabilities is included in the term net debt.
2) Dividend proposed by the Board of Directors.
3) Adjusted for bonus issue effect of the rights issue.
Amounts in SEK M unless otherwise stated 2021 2020 2019 2018 2017
Order situation
Order intake 28,258 30,568 26,832 24,347 23,228
Net sales 27,049 29,819 26,559 24,172 22,495
of which, international sales, % 98.2 97.3 98.0 97.7 97. 5
EBITDA 6,185 7,251 4,595 1,524 3,459
Adjusted EBITA 5,212 5,724 3,310 2,689 2,842
Operating profit/loss (EBIT) 4,371 4,784 2,372 -284 1,493
Net financial items -183 -299 -463 -340 -560
Profit/loss aer financial items 4,188 4,485 1,909 -624 933
Taxes -1,187 -1,213 -653 -315 184
Net profit/loss for the year 3,000 3,273 1,256 -939 1,117
Margin measures
EBITDA margin, % 22.9 24.3 17.3 6.3 15.4
Adjusted EBITA margin, % 19.3 19.2 12.5 11.1 13.8
Operating margin (EBIT), % 16.2 16.0 8.9 -1.2 6.6
Personnel
Number of employees, December 31 10,729 10,818 10,538 10,515 10,684
Amounts in SEK M unless otherwise stated 2021 2020 2019 2018 2017
Balance sheet
Intangible assets 24,148 22,085 24,283 24,098 23,045
Tangible assets 3,060 2,956 3,146 3,160 2,911
Right-of-use assets 1,060 1,017 941 – –
Financial assets 1,217 1,526 1,849 1,946 1,586
Inventories 4,767 4,513 4,691 4,544 4,879
Other receivables 6,227 6,862 8,549 8,331 8,155
Cash and cash equivalents 4,076 6,056 1,254 1,273 1,526
Total assets 44,555 45,014 44,713 43,352 42,102
Equity 25,176 21,486 20,973 19,655 19,806
Provisions for pensions, interest-bearing 3,378 3,359 3,555 3,035 3,081
Leasing liabilities 1,036 990 908 – –
Other interest-bearing liabilities 3,270 9,216 9,112 10,829 11,237
Other provisions 4,186 3,115 3,588 3,771 2,202
Other non-interest-bearing liabilities 7,508 6,848 6,577 6,062 5,776
Total equity and liabilities 44,555 45,014 44,713 43,352 42,102
Net debt, including pension liabilities
1)
3,609 7,50 9 12,321 12,591 12,792
Net debt, excluding pension liabilities
1)
231 4,150 8,766 9,556 9,711
Cash flow
Cash flow from operating activities 6,560 7,199 3,832 2,503 2,763
Cash flow per share, SEK 24.1 26.4 14.1 9.2 11.0
Net investments in non-current assets -614 -993 -1,111 1,335 1,633
Return indicators
Return on operating capital, % 17.3 16.3 8.3 6.7 7.3
Return on equity, % 12.9 15.1 6.2 -4.7 6.6
Financial indicators
Equity/assets ratio, % 56.5 47.7 46.9 45.3 47.0
Net debt/equity ratio, multiple 0.14 0.35 0.59 0.64 0.65
Operating capital, average 28,561 32,374 33,735 32,868 42,045
Equity, December 31 25,176 21,486 20,973 19,655 19,806
Data per share, amounts in SEK unless otherwise stated
Earnings per share 10.90 11.89 4.48 -3.55 5.49
Market price, December 31 395.10 192.10 174.00 79.90 119.00
Dividend 4.00
2)
3.00 1.50 1.00 1.50
Dividend yield, % 1.01 1.56 0.85 1.25 1.26
Price/earnings ratio
2)
36.25 16.16 38.84 N/A 21.68
Dividend as profit percentage, % 36.70 25.23 33.48 N/A 27.33
Equity per share 92.43 78.88 7 7.00 72.16 72.72
Average number of shares (million)
3)
272.4 272.4 272.4 272.4 250.7
Number of shares, December 31 (million)
3)
272.4 272.4 272.4 272.4 272.4
2021 ANNUAL REPORT
151
Multi-year overview Other information
Business areas
ACUTE CARE THERAPIES, SEK M
2021 2020 2019 2018 2017
Order intake 15,335 19,208 14,778 13,069 12,383
Net sales 15,527 18,719 14,637 13,013 12,201
Adjusted gross profit 9,596 11,536 8,660 7,627 7,403
Margin, % 61.8 61.6 59.2 58.6 60.7
Adjusted EBITDA 5,272 6,833 4,026 3,259 3,174
Margin, % 34.0 36.5 27.5 25.0 26.0
Depreciation, amortization and write-downs of tangible and intangible assets -828 -1,002 -916 -726 -674
Adjusted EBITA 4,444 5,831 3,110 2,533 2,500
Margin, % 28.6 31.1 21.2 19.5 20.5
LIFE SCIENCE, SEK M
2021 2020 2019 2018 2017
Order intake 4,120 3,413 2,640 2,295 2,011
Net sales 3,558 2,854 2,487 2,194 1,947
Adjusted gross profit 1,492 1,176 962 815 790
Margin, % 41.9 41.2 38.7 37.1 40.6
Adjusted EBITDA 870 522 432 348 435
Margin, % 24.5 18.3 17.4 15.9 22.3
Depreciation, amortization and write-downs of tangible and intangible assets -141 -128 -109 -71 -66
Adjusted EBITA 729 393 323 277 369
Margin, % 20.5 13.8 13.0 12.6 19.0
SURGICAL WORKFLOWS, SEK M
2021 2020 2019 2018 2017
Order intake 8,803 7,948 9,414 8,983 8,834
Net sales 7,965 8,246 9,435 8,965 8,347
Adjusted gross profit 3,304 3,163 3,779 3,501 3,459
Margin, % 41.5 38.4 40.1 39.1 41.4
Adjusted EBITDA 949 495 863 567 878
Margin, % 11.9 6.0 9.1 6.3 10.5
Depreciation, amortization and write-downs of tangible and intangible assets -559 -622 -641 -425 -433
Adjusted EBITA 390 -127 222 142 445
Margin, % 4.9 -1.5 2.4 1.6 5.3
2021 ANNUAL REPORT
152
Other information Multi-year overview
The Group’s 20 largest markets
The ten largest markets by business area
2021 2020 2019
SEK M % # SEK M % # SEK M % #
USA 9,040 33.4% 1 9,948 33.4% 1 9,315 35.1% 1
China 2,639 9.8% 2 2,186 7.3% 2 1,854 7.0% 2
Germany 1,997 7.4% 3 2,016 6.8% 3 1,783 6.7% 3
Japan 1,298 4.8% 4 1,476 5.0% 4 1,478 5.6% 4
France 1,272 4.7% 5 1,288 4.3% 5 1,228 4.6% 5
UK 989 3.7% 6 977 3.3% 7 880 3.3% 6
Italy 818 3.0% 7 1,011 3.4% 6 727 2.7% 7
Canada 620 2.3% 8 754 2.5% 9 516 1.9% 11
India 579 2.1% 9 384 1.3% 15 531 2.0% 9
Australia 558 2.1% 10 705 2.4% 10 660 2.,5% 8
Spain 530 2.0% 11 651 2.2% 11 453 1.7% 12
Sweden 492 1.8% 12 804 2.7% 8 524 2.0% 10
Netherlands 399 1.5% 13 522 1.8% 13 411 1.5% 14
Hong Kong 309 1.1% 14 329 1.1% 16 200 0.8% 24
Belgium 303 1.1% 15 460 1.5% 14 416 1.6% 13
South Korea 267 1.0% 16 305 1.0% 18 288 1.1% 16
Switzerland 260 1.0% 17 322 1.1% 17 286 1.1% 17
Denmark 241 0.9% 18 231 0.8% 23 230 0.9% 23
Russia 240 0.9% 19 284 1.0% 19 246 0.9% 21
Thailand 237 0.9% 20 257 0.9% 21 283 1.1% 18
2021 2020 2019
ACUTE CARE THERAPIES SEK M % # SEK M % # SEK M % #
USA 6,294 40.5% 1 7,358 39.3% 1 6,567 44.9% 1
China 1,491 9.6% 2 1,372 7. 3% 2 1,090 7.4% 2
Germany 916 5.9% 3 1,008 5.4% 3 830 5.7% 3
Japan 726 4.7% 4 890 4.8% 4 745 5.1% 4
France 533 3.4% 5 538 2.9% 7 436 3.0% 6
Italy 516 3.3% 6 737 3.9% 5 441 3.0% 5
India 465 3.0% 7 296 1.6% 13 389 2.7% 7
Canada 399 2.6% 8 572 3.1% 6 307 2.1% 9
UK 362 2.3% 9 496 2.7% 9 315 2.2% 8
Spain 356 2.3% 10 498 2.7% 8 278 1.9% 10
2021 2020 2019
LIFE SCIENCE SEK M % # SEK M % # SEK M % #
USA 1,252 35.2% 1 1,030 36.1% 1 818 32.9% 1
China 441 12.4% 2 153 5.4% 4 135 5.4% 5
Germany 400 11.2% 3 228 8.0% 3 218 8.8% 3
France 348 9.8% 4 345 12.1% 2 389 15.7% 2
UK 194 5.4% 5 131 4.6% 6 150 6.0% 4
Belgium 99 2.8% 6 141 5.0% 5 106 4,3% 6
Japan 91 2.6% 7 70 2.4% 9 89 3.6% 7
Netherlands 88 2.5% 8 127 4.5% 7 45 1.8% 11
Italy 58 1.6% 9 34 1.2% 15 51 2.0% 10
Denmark 58 1.6% 10 37 1.3% 14 23 0.9% 18
2021 2020 2019
SURGICAL WORKFLOWS SEK M % # SEK M % # SEK M % #
USA 1,494 18.8% 1 1,560 18.9% 1 1,930 20.5% 1
China 706 8.9% 2 661 8.0% 3 629 6.7% 4
Germany 682 8.6% 3 780 9.5% 2 734 7.8% 2
Japan 482 6.0% 4 517 6.3% 4 644 6.8% 3
UK 433 5.4% 5 349 4.2% 7 415 4.4% 5
France 391 4.9% 6 405 4.9% 6 403 4.3% 6
Sweden 315 4.0% 7 423 5.1% 5 369 3.9% 8
Australia 314 3.9% 8 297 3.6% 8 379 4.0% 7
Italy 243 3.1% 9 240 2.9% 9 235 2.5% 9
Canada 177 2.2% 10 144 1.7% 15 176 1.9% 12
2021 ANNUAL REPORT
153
Multi-year overview Other information
Acquisition history
Year Company Business Country Sales
2021 Talis Clinical LLC High Acuity cloud-based soware solutions US SEK 57 M
2021 Development activities from Verrix Biological indicators US SEK 0 M
2020 Applikon Biotechnology BV Life Science NL SEK 350 M
2020 Quadralene Holdings Ltd Disinfection GB SEK 75 M
2017 Carus HMS GmbH Integrated workflow solutions DE SEK 20 M
2017 Simm Company and Surgeon Aids Distributor TH SEK 75 M
2016 AccuMed Production facility for medical textiles DR SEK 100 M
2016 1st Call Mobility Ltd Medical-device solutions for bariatric patients GB SEK 100 M
2015 GOA Teknoloji Danismanlik Elektronik Low temperature sterilization technology TR SEK 20 M
2014 Pulsion AG Systems for hemodynamic monitoring DE SEK 300 M
2014 Altrax Group Ltd Systems for traceability and quality assurance for sterilization GB SEK 35 M
2014 Cetrea A/S Systems for resource planning DK SEK 30 M
2014 Austmel Pty Ltd Sterilization and thermal processes AU SEK 80 M
2013 LAAx Inc. Cardiac and vascular surgery US SEK 8 M
2013 Trans Medikal Devices Inc. Manufacture of sterilizers and distribution of disinfectors TR SEK 55 M
2013 STS East LLC Service US SEK 25 M
2012 Product rights from Avalon Laboratories Cardiopulmonary US – –
2012 Eirus Medical Critical Care SE – –
2012 Acare Medical Science Ltd Healthcare beds CH SEK 135 M
2012 USCI Distributor JP SEK 150 M
2012 Tecno Hospitalia Distributor CO SEK 4 M
2012 Therapeutic Support Systems (TSS) Wound care US SEK 1,600 M
2012 Steritec Products Mfg Inc. Consumables US SEK 70 M
2011 Blanchet Medical Service Service FR SEK 3 M
2011 Atrium Medical Inc Products for the cardiovascular market US USD 200 M
2011 Combimobil AB Rehabilitation aids SE SEK 2 M
2011 Fumedica Distributor CH SEK 70 M
2011 IDS Medical Equipment Distributor SG SEK 25 M
2011 Mak Saglik Distributor TR SEK 20 M
2011 STS Holding West Service US SEK 20 M
2010 Odelga Service AT SEK 25 M
2008 Datascope Cardiac assist and vascular surgery US USD 231 M
2008 Cardio Research Pty Ltd. Distributor AU AUD 5.1 M
2008 Subtil Crepieux Service FR EUR 8 M
2008 Getus Services Ltd Service NZ NZD 1.1 M
2008 Olmed AB Distributor SE SEK 70 M
2008 Boston Scientific’s Cardiac and Vascular
surgery divisions
Endoscopic vessel harvesting (EVH), anastomosis, stabilizers and
instruments for surgery on beating hearts and vascular implants US SEK 1,733 M
2007 NS Nielsen Equipment A/S Distributor DK – –
2006 Huntleigh Technology Special maresses for pressure-ulcer treatment, beds for intensive, specialist
and elderly care vein thrombosis prophylaxis and equipment for fetal and
vascular diagnostics. UK SEK 2,675 M
2006 Comercio E Industria Medicia Consumables for open-heart surgery BR SEK 25 M
2006 OTY GmbH Telemedicine specializing in products and solutions for hospitals’
IT infrastructure focused on the operating room. DE SEK 20 M
2006 Getinge Czech Republic Distributor CZ SEK 10 M
2005 Lancer UK Distributor UK SEK 104 M
2005 La Cahléne Isolator technology and electron sterilization technology FR EUR 40 M
2004 Dynamed Distributor CA SEK 85 M
2004 BHM Medical Inc. Patient management products for the care and elderly care segments CA SEK 206 M
2003 MAQUET AG, Swiss dealer Distributor CH CHF 4.9 M
2003 Siemens LSS Ventilators and anesthesia equipment for the hospital market SE EUR 230 M
2003 Jostra GmbH Equipment and consumables for cardiac surgery DE EUR 90 M
2003 Copharm B.V. Distributor NL EUR 10 M
2002 Heraeus Medical Surgical lamps, ceiling service units and therapy accessories and gas
distribution for operating rooms DE EUR 52 M
2001 ALM Surgical lamps FR FRF 490 M
2000 Maquet Surgical tables DE EUR 155 M
2000 Parker Bath Bathing systems for the semi-institutional care market UK SEK 150 M
2000 Lenken Healthcare Distributor IE SEK 65 M
2000 Gestion Techno-Medic Patient liing systems CA SEK 22 M
1999 Lunatronic Aps Comprehensive IT solutions for the maintenance of sterilization departments DK DKK 15 M
1999 MPT Corp. Washer disinfectors for the Life Science market US SEK 35 M
1998 Egerton Hospital Equipment Specialist beds and anti-decubitus maresses for hospitals and care facilities UK SEK 45 M
1998 Royal Linden B.V. Infection control NL SEK 60 M
1998 Medibo Patient liing and pressure-ulcer treatments BE SEK 28 M
1998 OMASA Infection control IT SEK 100 M
1998 SMI/BBC Infection control FR SEK 75 M
1998 Kemiterm Water distillers pure-steam generators for pharmaceutical industry DK DKK 25 M
1998
Pegasus Anti-decubitus products for hospitals and elderly care UK SEK 350 M
1996 MDT/Castle Infection control US – –
1996 Van Dijk Medizintechnik GmbH Infection control DE SEK 30 M
1995 Arjo Products for aging care related to hygiene and patient management SE SEK 1,538 M
1994 Lancer Disinfection products FR FRF 70 M
2021 ANNUAL REPORT
154
Other information Reconciliation of alternative performance measures
Reconciliation of alternative performance measures
Alternative performance measures refer to financial measures
used by the company’s management and investors to evaluate
the Group’s earnings and financial position and that cannot be
directly read or derived from the financial statements. These fi-
nancial measures are intended to facilitate analysis of the Group’s
performance. The alternative performance measures are not to
be considered a substitute for, but rather a supplement to, the
financial statements prepared in accordance with IFRS. The alter-
native performance measures recognized are not calculated in
accordance with IFRS but are provided since Getinge believes that
they are important to investors’ assessments of the Group and the
Getinge share, and that these performance measures are widely
used by investors, securities analysts and other stake holders
as supplementary measures of the earnings trend and financial
position. Getinge’s performance measures that are not defined in
accordance with IFRS are not necessary comparable with similar
measures presented by other companies and have certain limita-
tions as analysis tools.
THE GROUP’S PRIMARY PERFORMANCE MEASURES
Adjusted gross profit, SEK M 2021 2020
Gross profit 13,580 14,722
Add-back of:
Depreciation, amortization and write-downs of tangible and non-acquired intangible assets 813 1,017
Other items affecting comparability – 135
Adjustment for write-downs included in other items affecting comparability – –
Adjusted gross profit 14,392 15,874
Adjusted EBITDA, SEK M
2021 2020
Operating profit/loss (EBIT)
4,371 4,784
Add-back of:
Depreciation, amortization and write-downs of tangible and non-acquired intangible assets 1,542 1,973
Amortization and write-down of acquired intangible assets 273 494
Other items affecting comparability 473 59
Acquisition and restructuring costs 95 177
Adjustment for write-downs included in other items affecting comparability and restructuring costs – –
Adjusted EBITDA 6,754 7,487
EBITA, SEK M
2021 2020
Operating profit/loss (EBIT)
4,371 4,784
Add-back of:
Amortization and write-down of acquired intangible assets 273 494
EBITA 4,643 5,278
Adjusted EBITA, SEK M
2021 2020
Operating profit/loss (EBIT)
4,371 4,784
Add-back of:
Amortization and write-down of acquired intangible assets 273 494
Other items affecting comparability 473 269
Acquisition and restructuring costs 95 177
Adjustment for write-downs of acquired intangible assets included
in other items affecting comparability and restructuring costs – –
Adjusted EBITA 5,212 5,724
Adjusted EBIT, SEK M
2021 2020
Operating profit/loss (EBIT)
4,371 4,784
Add-back of:
Other items affecting comparability 473 300
Acquisition and restructuring costs 95 177
Adjusted EBIT 4,939 5,261
Net debt/equity ratio, multiple
2021 2020
Net interest-bearing debt, SEK M 3,609 7,509
Equity, SEK M 25,176 21,486
Net debt/equity ratio 0.14 0.35
1) Net interest-bearing debt in relation to equity.
2021 ANNUAL REPORT
155
Reconciliation of alternative performance measures Other information
ADJUSTED EBITA PER SEGMENT
Adjusted EBITA, 2021,SEK M
Acute Care
Therapies
Life
Science
Surgical
Workflows
Group
functions
and other Total
Operating profit (EBIT) 3,685 702 369 -386 4,371
Add back of:
Amortization and write-down of acquired intangible assets 229 25 19 – 273
Other items affecting comparability 529 – -56 – 473
Acquisition and restructuring costs 1 2 58 35 95
Adjusted EBITA 4,444 729 390 -351 5,212
Other items affecting comparability, 2021, SEK M
Acute Care
Therapies
Life
Science
Surgical
Workflows
Group
functions
and other Total
Provision related to surgical mesh implants 601 – – – 601
Capital gain on divestment of properties -72 – – – -72
Other – – -56 – -56
Total 529 – -56 – 473
Adjusted EBITA, 2020,SEK M
Acute Care
Therapies
Life
Science
Surgical
Workflows
Group
functions
and other Total
Operating profit (EBIT) 5,312 337 -489 -375 4,784
Add back of:
Amortization and write-down of acquired intangible assets 454 26 14 – 494
Other items affecting comparability 3 30 236 – 269
Acquisition and restructuring costs 62 0 113 2 177
Adjusted EBITA 5,831 393 -127 -374 5,724
Other items affecting comparability, 2020, SEK M
Acute Care
Therapies
Life
Science
Surgical
Workflows
Group
functions
and other Total
Write-down of R&D 73 29 108 – 210
Impairment of receivables 55 – 7 – 62
Write-down of inventories 38 1 92 – 131
Reversed unutilized provision -183 – – – -183
Other 20 – 29 – 49
Total 3 30 236 – 269
2021 ANNUAL REPORT
156
Other information Group companies
Group companies
Head Office
Getinge AB
Lindholmspiren 7A
Box 8861
SE-402 72 Göteborg
Tel: +46 10 335 0000
President: Maias Perjos
Australia
Getinge Australia Pty Ltd
Level 2, 4 Talavera Road
AU-Macquarie Park NSW 2113
Tel: +61 2 8874 3155
President: Kartik Natarajan
Austria
Getinge Österreich GmbH
Lemböckgasse 49
AT-1230 Wien
Tel: +43 1 8651 4870
President: Josef Hinterberger
Belgium
Getinge Belgium NV
Alfons Gossetlaan 17
BE-1702 Groot-Bijgaarden
Tel: +32 24 67 8585
President: Beina Quaedvlieg
Brazil
Getinge do Brasil Equipamentos
Médicos Ltda
Avenida Manuel Bandeira, 291 –
Bloco B – Conjunto 33 e 34
BR-05317-020 São Paulo
Tel: +55 11 2608-7400
President: Aurélio Carmona
Canada
Getinge Canada Ltd
90 Matheson Blvd W, Suite 300
CA-L5R 3R3, Mississauga, ON
Tel: +1 905 752 3300
President: Dave Blair
China
Getinge (Shanghai) Trading Co., Ltd
20F, Building 1, 188 Ruby Road,
Changning District
CN-201 103 Shanghai
Tel: +86 21 6197 3999
President: Takehiro Umoto
Maquet (Shanghai) Medical
Equipment Co., Ltd
20F, Building 1, 188 Ruby Road,
Changning District
CN-201 103 Shanghai
Tel: +86 21 6197 3999
President: Takehiro Umoto
Maquet (Suzhou) Co., Ltd
No.158 Fangzhou Road, SIP
CN-215 024 Suzhou
Tel: +86 512 6283 9880
President: Shukun Liu
Suzhou Maquet Medical Engineering
Co., Ltd
No.158 Fangzhou Road, SIP
CN-215 024 Suzhou
Tel: +86 512 6283 9880
President: Takehiro Umoto
Colombia
Getinge Colombia SAS
Cra. 16 No. 95 - 70 Of 701
CO-110221 Bogotà, D.C.
Tel: +57 601 743 8124
President: Rodrigo Garcia
Czech Republic
Getinge Czech Republic s.r.o.
Na Strži 1702/65
CZ-140 00 Praha
Tel: +420 225 092 302
President: Jiri Lacina
Denmark
Getinge Cetrea A/S
Brendstrupgårdsvej 21 F
DK-8200 Aarhus N
Tel: +45 38 400570
President: Charloe Enlund
Getinge Danmark A/S
Industriparken 44B
DK-2750 Ballerup
Tel: +45 459 32 727
President: Magnus Back
Getinge IT Solutions ApS
Dampfærgevej 21, 2.
DK- 2100 Copenhagen
Tel: +45 33 338 855
President: Charloe Enlund
Finland
Getinge Finland Oy Ab
Vuoritontuntie 22
FI-02200 Espoo
Tel: +35 896 824 120
President: Magnus Back
Maquet Finland Oy
Vuoritontuntie 22
FI-02200 Espoo
Tel: +35 896 824 1250
President: Magnus Back
France
Getinge France SAS
Immeuble Iliade. 23, Avenue Carnot
FR-91300 Massy
Tel: +33 164 868 907
President: Patricia Chesnais
Getinge Infection Control SAS
30 Boulevard de l'Industrie
FR-31170 Tournefeuille
Tel: +33 561 151111
President: Sébastien Blanche
Getinge Life Science France SAS
1 Rue du Comté de Donegal
FR-41100 Vendôme
Tel: +33 254 734747
President: Niclas Jonasson
Intervascular SAS
270 Voie Ariane - ZI Athélia 1
FR-13600 La Ciotat
Tel: +33 442 084646
President: Jocelyn Lebrun
Maquet SAS
Parc de Limère
Avenue de la Pomme de Pin
FR-45160 Ardon
Tel: +33 238 258888
President: Grégory Pinaton
2021 ANNUAL REPORT
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Group companies Other information
Germany
Getinge Deutschland GmbH
Kehler Str. 31
DE-76437 Rasta
Tel: +49 7222 932 0
President: Josef Hinterberger
Getinge Financial Services GmbH
Kehler Str. 31
DE-76437 Rasta
Tel: +49 7222 932 0
President: Mahias Gelsok
Getinge Holding B.V. & Co KG
Kehler Str. 31
DE-76437 Rasta
Tel: +49 7222 932 0
President: Mahias Gelsok
Getinge IT Solutions GmbH
Südportal 5
DE-22848 Norderstedt
Tel: +49 40 514 35 0
President: Dr. Mahias Rath
Maquet Cardiopulmonary GmbH
Kehler Str. 31
DE-76437 Rasta
Tel: +49 7222 932 0
President: Lena Hagman & Markus Medart
Maquet GmbH
Kehler Str. 31
DE-76437 Rasta
Tel: +49 7222 932 0
President: Dr. Dieter Engel &
Stéphane Le Roy
MediKomp GmbH
Kehler Str. 31
DE-76437 Rasta
Tel: +49 7222 932 0
President: Özgür Yildiz
Pulsion Medical Systems SE
Hans-Riedl-Str. 21
DE-85622 Feldkirchen
Tel: +49 89 45 99 14 0
President: Stephan Ha
Hong Kong
Getinge Group Hong Kong Ltd
26/F, Port 33, 33 Tseuk Luk Street
HK-San Po Kong, Kowloon, Hong Kong
Tel: +852 2207 6111
President: CM Leung
´
India
Getinge India Pvt Ltd
203-204, Fulcrum “B” Wing, 2nd Floor,
Airport Road, Andheri East
IN-400 099 Mumbai
Tel: + 91 22 6233 2100
President: Sunil Dinanath Joshi
Getinge Medical India Pvt Ltd
203-204, Fulcrum “B” Wing, 2nd Floor,
Airport Road, Andheri East
IN-400 099 Mumbai
Tel: + 91 22 6233 2100
President: Bhaskar Bheemarao
Ireland
Getinge Treasury Ireland DAC
International House
3 Harbourmaster Place, IFSC
IE-D01K8F1 Dublin
Tel: +353 86 380 5182
President: Peter Hjalmarson
Getinge Ireland Ltd.
B6 Calmount Park, Ballymount, Dublin 12
IE-Dublin
Tel: +353 1 426 0032
President: Avril Forde
Italy
Getinge Italia Srl
Via Guido Gozzano 14
IT-20092 Cinisello Balsamo (MI)
Tel: +39 02 6111351
President: Roberto Chareun
Japan
Getinge Group Japan KK
Sphere Tower Tennoz 23F
2-2-8 Higashi-shinagawa, Shinagawa-ku
JP-140-0002 Tokyo
Tel: +81 3 5463 8310
President: Hideaki Yamashita
Mexico
Maquet Mexicana, S. de R.L. de C.V.
Montecito 38 Col. Napoles Benito Juarez
MX-03810 Distrito Federal
Tel: +52 55 9000 8970
President: Paul Barber
Netherlands
Applikon Biotechnology B.V.
Heertjeslaan 2
NL-2629 JG Del
Tel: +31 10 20 83 555
President: Sean Herdlein
Getinge Netherlands BV
Oscar Romerolaan 3
NL-1216 TJ Hilversum
Tel: +31 35 62 55320
President: Beina Quaedvlieg
Norway
Getinge Norge AS
Enebakkveien 150
NO-0680 Oslo
Tel: +47 230 35 200
President: Magnus Back
Poland
Getinge IC Production Poland Sp. z o.o.
ul. Szkolna 30
PL-62-064 Plewiska
Tel: +48 61 630 99 01
President: Jakub Cegieła
Getinge Polska Sp. z o.o.
ul. Żwirki i Wigury 18
PL-02-092 Warszawa
Tel: +48 22 882 06 44
President: Szymon Kawałko
Getinge Shared Services Sp. z o.o.
Klimeckiego 1
PL-30-705 Krakow
Tel: +48 12 385 42 22
President: Agnieszka Obuchowska
2021 ANNUAL REPORT
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Other information Group companies
Portugal
Getinge Group Portugal Unipessoal Lda
Edeficio Zenith, Rua Dr.
Antonio Loureiro Borges nº 9/9ª - 3º andar
PT-1600-233 Lisboa
Tel: +351 214 189815
President: Manuel Moreno
Russia
Maquet LLC
Stanislavskogo Street 21, Building 3
RU-109004 Moscow
Tel: +8 495 514 0055
President: Anna Mednikova
Serbia
Getinge Group South East Europe
d.o.o. Beograd
Spanskih Boraca 3
RS-11000 Belgrade
Tel: +381 11 785 63 64
President: Jiri Lacina
Singapore
Getinge South East Asia Pte. Ltd.
20 Bendemeer Road
#06-01/02 BS Bendemeer Centre
SG-339914 Singapore
Tel: +65 6 296 1992
President: Teodor Johansson
Slovakia
Getinge Slovakia s.r.o.
Pribinova 25
SK-811 09 Bratislava
Tel: +42 1 2335 54150
President: Jiri Lacina
South Africa
Maquet Southern Africa (Pty) Ltd
4 Bridle Close, Woodmead Oce Park,
Van Reenen Ave
ZA-2191, Sandton, Johannesburg
Tel: +27 11 656 3306
President: Karen Botma
South Korea
Maquet Medical Korea Co., Ltd
13F KeumKang Building, 304,
Bongeunsa-ro, Gangnam-gu
KR-06143 Seoul
Tel: +82 25 58 2271
President: Hyun Dong Kim
Spain
Getinge Group Spain SL
C/Marie Curie 5,Edificio Alfa Planta 6
ES-28521 Rivas Vacia Madrid
Tel: +34 91 678 1652
President: Manuel Moreno
Sweden
Getinge AB
Lindholmspiren 7A
Box 8861
SE-402 72 Göteborg
Tel: +46 10 335 0000
President: Maias Perjos
Getinge Disinfection AB
Ljungadalsgatan 11
SE-352 46 Växjö
Tel: +46 10 335 9800
President: Anna Eklöf-Persson
Getinge Logistics AB
Ekebergsvägen 26
SE-305 75 Getinge
Tel: +46 10 335 0000
President: Christian Lambrant
Getinge Sterilization AB
Ekebergsvägen 26
SE-305 75 Getinge
Tel: +46 10 335 0000
President: Niclas Jonasson
Getinge Sverige AB
Ekebergsvägen 26
SE-305 75 Getinge
Tel: +46 10 335 0000
President: Magnus Back
Getinge Treasury AB
Lindholmspiren 7A
SE-417 56 Göteborg
Tel: +46 10 335 0000
President: Maria Lykken Ljungdahl
Maquet Critical Care AB
Röntgenvägen 2
SE-171 54 Solna
Tel: +46 10 335 7300
President: Elin Frostehav
Switzerland
Getinge Schweiz AG
Quellenstrasse 41b
CH-4310 Rheinfelden
Tel: +41 71 335 03 03
President: Josef Hinterberger
Taiwan
Getinge Group Taiwan Co., Ltd
Rm. 08, 6F, No. 288, Sec. 6, Civic Blvd.,
Xinyi Dist.
TW-110 Taipei City
Tel: +886 2 81616588
President: Takehiro Umoto
Thailand
Getinge (Thailand) Co., Ltd.
5, Krungthepkreetha Road,
Soi 4 (B.Grimm) Huamark
TH-10240 Bangkok
Tel: +66 2704 4388
President: Yaowapa Hahasakul
Türkiye
Getinge Medikal
Sistemler San. Ve Tic. A.Ş.
Allianz Plaza Küçükbakkalköy Mah.
Kayışdağı Cad. No:1 Kapı no:96
TR-34752 Ataşehir / İstanbul
Tel: +90 216 444 66 78
President: Vecihe Özek
Getinge Stericool Medikal
San. Ve Tic. A.Ş.
Beştepe Mahallesi Nergiz Sokak No:7/2 İç
Kapı No:71 Yenimhalle
TR-06560 Ankara
Tel: +90 312 387 39 40
President: Levent Süzen
Maquet Cardiopulmonary Medikal
Teknik San.Tic.Ltd.Şti.
Serbest Bölge R Ada,108/1,109/1,110/1,111/1
Parseller 1 Cadde Dış Kapı No:8
TR-07070 Antalya
Tel: +90 242 249 90 30
President: Murat Calik
United Arab Emirates
Getinge Group Middle East FZ-LLC
1901N, 19th Floor, HQ Complex,
Dubai Science Park
AE-Dubai
Tel: +971 4 447 0963
President: Salah Malek
2021 ANNUAL REPORT
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Group companies Other information
UK
Applikon Biotechnology BV (UK branch)
Basepoint Business Centre, Oakfield Close
GB-GL20 8SD Tewkesbury Gloucestershire
Tel: +44 3453 37306
President: Sean Herdlein
Getinge Ltd
14-15 Burford Way, Boldon Business Park
GB-NE35 9PZ Sunderland
Tel: +44 191 519 6200
President: Avril Forde
Getinge IT Solutions Ltd
14-15 Burford Way, Boldon Business Park
GB-NE35 9PZ Sunderland
Tel: +44 191 519 6200
President: Avril Forde
Quadralene Ltd
Bateman Street
GB-DE23 8JL Derby
Tel: +44 1332 292500
President: Robert Newsome
USA
Applikon Biotechnology Inc.
733 N. Pastoria Ave
US-94085 Sunnyvale, CA
Tel: +1 650 578 1396
President: Sean Herdlein
Atrium Medical Corporation
40 Continental Blvd.
Merrimack, NH 03054
Tel: +1 603 880 1433
President: Chad Carlton
Datascope Corp.
15 Law Drive
US-07004 Fairfield, NJ
Tel: +1 973 709 7000
President: Jennifer Paradise
Getinge Group Logistics Americas, LLC
45 Barbour Pond Drive
US-07470 Wayne, NJ
Tel: +1 973 709 7000
President: Frank Kozar
Getinge USA Sales, LLC
1 Georey Way
US-07470 Wayne,NJ
Tel: +1 973 709 7000
President: Eric Honroth
Lancer Sales USA Inc
1150 Emma Oaks Trail Ste. 140
US-32746 Lake Mary, FL
Tel: +1 407 327 8488
President: Trent Youngman
Maquet Cardiovascular LLC
45 Barbour Pond Drive
US-07470 Wayne, NJ
Tel: +1 973 709 7000
President: Stephanie Trizinski
Steritech Products Mfg. Co., Inc.
74 Inverness Dr. East
US-80112 Englewood, CO
Tel: +1 303 660 4201
President: Phil Hendricks
Talis Clinical LLC
650 Mondial Parkway
US-44241 Streetsboro, OH
Tel: +1 234 284 2400
President: Gary Colister
Vietnam
Getinge Vietnam Company Ltd
Floor 6, Yoco Building,
41 Nguyen Thi Minh Khai,
Ben Nghe Ward, District 1
VN-Ho Chi Minh City
Tel: +84 28 3824 3391
President: Philippe Rocher
The list includes significant operating Group companies
2021 ANNUAL REPORT
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Other information Definitions
Definitions
Financial terms
Adjusted EBIT: Operating profit (EBIT) with
add-back of acquisition and restructuring
costs and other items aecting compara-
bility.
Adjusted EBITA: EBITA with add-back of
acquisition and restructuring costs and
other items aecting comparability.
Adjusted EBITDA: EBITDA with add-back
of acquisition and restructuring costs and
other items aecting comparability.
Adjusted earnings per share: Adjusted net
profit for the year aributable to Parent
Company's shareholders in relation to
average number of shares.
Adjusted gross profit: Gross profit with
add-back of depreciation, amortization
and write-downs and other items aecting
comparability.
Adjusted net profit: Net profit for the year
with add-back of amortization and write-
down of acquired intangible assets, acqui-
sition and restructuring costs, other items
aecting comparability and tax eect of
add-back of income statement items.
Adjusted profit before tax: Profit before
tax with add-back of amortization and
write-down of acquired intangible assets,
acquisition and restructuring costs and
other items aecting comparability.
Capital goods: Durable products that are
not consumed when used.
Cash flow aer net investments: Cash flow
from operating activities and investing
activities, excluding acquisitions and
divestment of operations.
Cash flow per share: Cash flow from
operating activities divided by the average
number of shares.
Consumables: Products that are
continuously consumed as well as service,
spare parts and similar items.
Currency transaction effect: Exchange of
current year's volumes of foreign currency
at this year's exchange rates, compared
with the exchange rates in the preceding
year.
Dividend yield: Dividend in relation to the
market share price on December 31.
Earnings per share: Net profit for the year
aributable to Parent Company's share-
holders in relation to average number of
shares.
EBIT: Operating profit.
EBITA: Operating profit (EBIT) with add-
back of amortization and write-down of
acquired intangible assets.
EBITDA: Operating profit (EBIT) with add-
back of amortization, depreciation and
write-downs.
EBITDA margin: EBITDA in relation to net
sales.
EBITA margin: EBITA in relation to net
sales.
Equity/assets ratio: Equity in relation to
total assets.
Equity per share: Equity in relation to the
number of shares at the end of the period.
Gross margin: Gross profit in relation to
net sales.
Interest-coverage ratio: Adjusted EBITDA
in relation to net interest.
Items affecting comparability: Comprises
acquisition and restructuring costs and
other items aecting comparability. Other
items aecting comparability are signifi-
cant revenue/expenses that impact
comparability between accounting
periods. These items include, but are
not limited to, write-downs, disputes
and major gains and losses aributable
to divestments of assets or businesses.
Net debt/equity ratio: Net interest-bearing
debt in relation to equity.
Operating capital: Average total assets
with add-back of cash and cash equiva-
lents, other provisions, accounts payable
and other non-interest-bearing liabilities.
Operating margin: Operating profit (EBIT)
in relation to net sales.
Organic change: A financial change
adjusted for currency, acquisitions and
divestment of operations.
P/E ratio: Share price (final price) in
relation to earnings per share.
Return on equity: Profit aer tax in
relation to average equity.
Return on operating capital:
Adjusted EBIT in relation to operating
capital.
Medical terms
Artificial gras: Artificial vascular
implants.
Cardiopulmonary: Pertaining or belonging
to both heart and lung.
Cardiovascular: Pertaining or belonging to
both heart and blood vessels.
DPTE®-BetaBag: A bag that ensures con-
tamination-free transfer of components.
2021 ANNUAL REPORT
161
Definitions Other information
ECMO: Extracorporeal membrane oxygen-
ation, meaning oxygenation outside the
body through a membrane. Put simply, a
modified cardiac and respiratory machine
that exchanges oxygen and carbon dioxide,
like an artificial lung.
Endoscope: Equipment for visual exam-
ination of the body’s cavities, such as the
stomach.
Endovascular: Vascular treatment using
catheter technologies.
Extracorporeal life support: Oxygenation
of the patient's blood outside the body
(extracorporeal) using advanced medical
technology.
Hemodynamic monitoring: Monitoring
the balance between blood pressure and
blood flow.
Low temperature sterilization: A device
used to sterilize surgical instruments
which cannot be sterilized with high
temperature steam. It is mainly used for
instruments used in the minimal invasive
and robotic surgery.
NAVA: Neurally Adjusted Ventilatory As-
sist (NAVA) identifies the electric activity
that activates the human diaphragm and
using these signals adapts the ventilation
to the patient’s respiratory rhythm.
Perfusionist: Medically trained person
which operates the heart-lung machine
during surgery.
Stent: A tube for endovascular widening of
blood vessels.
Sterilizer: A device to eliminate microor-
ganisms on surgical instruments, usually
by high temperature with steam.
Vascular intervention: A medical proce-
dure conducted through vascular punc-
turing instead of using an open surgery
method.
Ventilator: Medical device to help patients
breath.
Geographic areas
Americas: North, South and Central
America.
APAC: Asia and Pacific.
EMEA: Europe, Middle East and Africa.
2021 ANNUAL REPORT
162
Other information
Annual General Meeting
and Nomination Commiee
Annual General Meeting
The Annual General Meeting will take
place on April 26, 2022 at 11:30, in the
Congress Hall, Hotel Tylösand, Halmstad.
Detailed information about participation
and postal voting is available at the
company's website,
www.getinge.com/us/about-us/
corporate-governance/general-meetings/
annual-general-meeting-2022/
Registration
Shareholders wishing to participate at the
Annual General Meeting should:
• Be registered in the shareholders’
register kept by Euroclear, not later than
April 14, 2022
• Inform the company of their intention to
participate not later than April 20, 2022
Shareholders may register in the
following ways:
• Getinge’s website: www.getinge.com
• By conventional mail to:
Getinge AB (publ)
“AGM 2021”
c/o Euroclear Sweden AB
Box 191, SE-101 23 Stockholm, Sweden
• By telephone: +46 (0) 10 335 08 18
(weekdays 09: 00–16: 00)
Shareholders who wish to participate in
the Annual General Meeting by postal vote
should cast their postal vote in accordance
with instructions available at Getinges
website, www.getinge.com/us/about-us/
corporate-governance/general-meetings/
annual-general-meeting-2022/
Nominee-registered shares
Shareholders whose shares are registered
in the name of a nominee through a bank
or other nominee must be entered in their
own name in the shareholders’ register
maintained by Euroclear Sweden AB not
later than April 14, 2022 in order to be
entitled to participate at the AGM. Share-
holders must inform the nominees well in
advance of this date.
For shareholders represented by agents
power of aorney must be issued, which
should be sent before the meeting. A
power of aorney form can be down-
loaded via www.getinge.com/us/about-us/
corporate-governance/general-meetings/
annual-general-meeting-2022/
The one who representing legal entity
must show certified copy of registration
certificate or equivalent authorization doc-
uments showing authorized signatory.
Nomination Commiee
Getinge’s interim reports for the third
quarter of 2021 contained instructions for
shareholders on how to proceed to submit
proposals to Getinge’s Nomination Com-
miee and how to propose motions to be
addressed at the Annual General Meeting.
Dividend
The Board of Directors and CEO propose
that a dividend of SEK 4.00 (3.00) per share,
a combined total of SEK 1,089 M (817), be
paid for 2021. The proposed record date
is April 28, 2022. Euroclear is expected to
distribute the dividend to shareholders on
May 3, 2022.
Financial information
Updated information on, for example, the Getinge share and
corporate governance is available on Getinge’s website
www.getinge.com.
The Annual Report, year-end report and interim reports are
published in Swedish and English and are available for down-
load at: www.getinge.com.
A printed copy of the Annual Report can also be ordered at
www.getinge.com.
Financial information
Preliminary dates for financial information are as follows:
• April 26, 2022: Interim report January–March 2022
• April 26, 2022: Annual General Meeting
• July 19, 2022: Interim report, January–June 2022
• October 19, 2022: Interim report January–September 2022
• February 1, 2023: Year-end report 2022
• March 2023: 2022 Annual Report
2021 ANNUAL REPORT
163
Contact
Getinge AB (publ)
Lindholmspiren 7A
Tel: +46 (0)10 335 00 00
E-mail: info@getinge.com
www.getinge.com
Reading guide
• The Getinge group is referred to as
Getinge in the Annual Report.
• Figures in parentheses pertain to
operations in 2020, unless otherwise
specified.
• Swedish kronor (SEK) is used throughout.
• Millions of kronor are abbreviated SEK M.
• All figures pertain to SEK M, unless
other wise specified.
• For practical reasons, numbers are not
rounded o in the Annual Report there-
fore it can occur that notes and tables
do not sum up.
• Information provided in the Annual
Report concerning markets, compe-
tition and future growth constitutes
Getinge’s assessment based on both
external information and material com-
piled internally.
Distribution policy
The Annual Report is available for
download at www.getinge.com. A printed
version of the report can also be ordered
from the website. The decision not to
automatically send a printed version to
the company’s shareholders is based on
the ambition to reduce Getinge’s negative
impact on the environment.
Reading guide and
distribution policy
Production: Narva
Print: Elanders Sverige AB, 2022
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Printed matter
3041 0242
Getinge AB
Lindholmspiren 7A
P.O. Box 8861
SE-402 72, Gothenburg
Sweden
Tel: +46 (0)10 335 00 00
E-mail: info@getinge.com
www.getinge.com