Getinge 2022 Annual Report
Getinge 2022 Annual Report
Introduction
Strategy
Corporate Governance
Annual Report
Sustainability Report
Other information
Contents
Deficiencies in
cybersecurity
Description
Security deficiencies in the Group's
digital offering, such as connected
machines at customer sites and stricter
legal requirements for processing
personal data.
Potential consequences
Restricted availability of equipment
delivered by Getinge to its customers,
which could result in interruptions to
the hospital operations and it not being
possible to offer patients sufficient care
in critical situations.
Management
Getinge works diligently to ensure the integrity of its equipment that is connected to the Internet.
Comprehensive access testing and other measures are carried out before these solutions are offered
to the Group's customers.
Business interruptions
Unforeseen and sudden events, such
as natural disasters, 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.
There is still a risk of temporary business interruptions linked to a further deterioration in access to key components
such as semiconductors as a result of the pandemic and uncertain global security situation.
The Group continuously works on loss 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 interruption risks, following a
group-wide standard. The process of further improving the Group's business continuity continued 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
affected 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.
New competitors and
new technology
Certain markets and product segments
have niche players who offer solutions
outside customary market behavior.
These competitors could capture
market shares from more established
companies such as Getinge, resulting
in a negative effect 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.
Laws and regulations
mainly on business ethics
Breaches of competition law, anti-
corruption, data privacy (such as 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 regarding
anti-competitive procedures in the sale of medical devices in Brazil. This process continued in 2022 and is ongoing. It cannot
be ruled out that any further agreements with authorities may have a material impact on the company's financial earnings
and position, but it is not currently possible to estimate the amount or date.
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 Ethics & Compliance group function was expanded during the year 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 provided on an ongoing basis and the aim is for all employees
to conduct such training 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.
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