Getinge 2022 Annual Report slide image

Getinge 2022 Annual Report

Getinge 2022 Annual Report Introduction Strategy Corporate Governance Annual Report Sustainability Report Other information Contents with a documented ability to deliver high-quality clinical results and economic benefits. The Group's research and development costs amounted to SEK 1,658 M (1,197) in 2022. Of this amount, SEK 473 M (346) was capitalized as intangible assets. Personnel At December 31, 2022, there were 11,082 (10,729) employees, of whom 1,228 (1,225) were employed in Sweden. In 2022, Getinge continued its extensive efforts to strengthen the Group's personnel and management development. The work is based on an analysis of the company's needs for specialist 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 develop- ment. One initiative is that all Getinge units offer at least 16 weeks paid parental leave applicable to birth, adoption and surrogacy, and four weeks paid caregiver leave to care for a close family member. In 2022, the Group also continued its long-term endeavors to increase diversity and collaboration. Getinge has a previously implemented policy to ensure that all employees are given equal opportunity to develop and receive equal pay for equal work, regardless of such factors as gender, ethnicity or religion. Remuneration to senior executives The guidelines for remuneration to senior executives adopted at the 2022 AGM and the Board's proposal for guidelines ahead of the 2023 AGM are presented on pages 63-67. In 2022, the company complied with the guidelines adopted at the 2022 AGM. No devia- tions from the guidelines nor any derogations from the procedure for resolution on remuneration, established by the remuneration guidelines, have been made. On the basis of the possibility pre- scribed in the guidelines for remuneration to Senior Executives, the Board of Directors has however during 2022 resolved on temporary deviation from the guidelines in one case applicable for the current financial year and in one case applicable for the financial year of 2023 (See further in the remuneration report). The remuneration report is presented on pages 68-71. Total remuneration to senior executives amounted to SEK 94 M (126) in 2022. (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 part of the Annual Report. The statutory Sustainability Report is defined on page 130. A description of diversity on the Board can be found on pages 33-35. 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 manufactur- ing 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 development, EcoDesign, the aim is to reduce the environ- mental impact from manufacturing and product usage, and offer customers sustainable market offerings. One facility in Sweden conducts operations requiring permits or declaration under 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 in the section Strategy and in the section Sustainabil- ity report. Getinge's sustainability targets 2022-2025 • • • Improved customer quality index >70% Employee commitment >70% CO2 neutral in own operations by 2025 All employees trained in business ethics and responsible leadership Risks and uncertainties 2022 was a year in which the consequences of the ongoing pan- demic impacted the operations. A shortage of critical components and high uncertainty in the transport sector led to disruptions and spasmodic production with corresponding patterns to our deliveries to the Group's customers in several product segments. Getinge is working actively to mitigate these effects through a close partnership with the Group's most critical suppliers. It cannot be ruled out that these problems will continue over the next few quarters. In addition, Getinge is exposed to risk related to other potential external events, besides the COVID-19 pandemic, such as geopolit- ical 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. The process of further enhancing the Group's work on continuity risks continue in 2022. External factors such as geopolitical tensions and possible associated sanctions are risks that could affect Getinge's ability to expand in markets that have significant 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 geopolitical situation. Technological advances are currently being made at a very fast pace, which is affecting the competitive situation in the market. The Group assigns considerable resources to developing its cus- tomer offering, 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 information 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 successful- ly 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 suppliers. Getinge applies a far-reaching quality process that aims to ensure a high and even level of quality to meet customers' legitimately high requirements. 61
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