Five focus
areas for
the future

Arjo’s focus is on contributing to better quality of care and enhanced efficiency, further leading to reduced healthcare costs. Our goal is to be a market leader in long-term care, while maintaining our strong position in acute care.

Improved customer value

To create customer value, we focus on the unique needs in both acute and long-term care. Through a close dialogue with our customers, significant experience in product development, and strong partnerships, we can offer solutions that contribute to more efficient healthcare, reduced care costs and improved treatment outcomes. We support our customers in meeting current and future demographic challenges, increased regulatory requirements, improved quality and safety for healthcare providers and patients, as well as by enhancing the efficiency of patient flows. In 2019, we launched new products and solutions, entered new partnerships and invested in acquisitions, all in order to strengthen our offering.

Strengthened commercial focus

Increased market presence is key to strengthening Arjo’s commercial focus on new and existing markets. We have a strong position in acute care and are making investments to increase our presence in long-term care. In addition, we work to optimize our product portfolio and sales processes. In our largest market, the US, we continued to strengthen our market presence and generated solid growth during the year. Investments to build up sales organizations in, for example, Africa and Latin America, yielded favorable results in 2019. Several distributor markets also reported a positive performance, including Africa, Eastern Europe and countries in South-East Asia. The Group grew by nearly 4% in 2019.

Increased operational agility

Arjo is working to create an agile organization based on decisions made in close relation to our customers. This allows us to effectively meet their needs and adapt to changes in the market. During the year, several activities were initiated to optimize the Group’s resources, mainly in the UK and within our US rental operations. We also strive to always deliver the highest possible quality and safety, and work actively to ensure that we comply with existing regulatory requirements. Arjo successfully passed an audit in 2019 to ensure that we meet the requirements of EU’s new Medical Device Regulation (MDR).

Grow the business people together

It is the people within the organization who generate and develop the business. We have a long-term agenda to ensure that Arjo has the necessary leadership and skills to meet current and future business needs. This involves succession planning, activities to promote diversity, and various training programs. During the year, Arjo continued to build an organization characterized by equality and diversity. As part of this initiative, Arjo continuously conducts a global talent program with the goal of developing and utilizing employee skills, together with finding solutions and identifying future business challenges and opportunities. We also conduct an annual global employee survey to listen to our employees and continue developing a committed organization.

A winning and sustainable corporate culture

Our objective is to continue our journey of creating a performance driven organization based on Arjo’s core values – our Guiding Principles. These were developed in 2019 through a close dialogue within the organization. These values are founded upon our desire to improve the health and well-being of all people, as well as everyones’ equal value. In order to enable Arjo achieve a customer–focused, winning and sustainable corporate culture, we promote a high level of involvement, a collaborative spirit, inspiring leadership and focus on solutions that add value. This also involves building a culture of ownership, decision making, and being a team player who works towards the Group’s common goals.

Significant investments in growth

Arjo’s Rest of the World region accounts for approximately 13% of the company’s net sales. The region grew organically by nearly 12% in 2019, laying a foundation for further growth. Sharnee Farfan, Vice President Marketing, Rest of the World, explains the success factors and the road ahead.

Can you explain some of the factors behind Rest of the World’s strong growth in 2019?

“In 2019, we made significant investments in developing our sales organization and distributor networks. Through new and sustainable partnerships, we were able to increase our geographic coverage and enter new, growing segments, as well as introduce new products to the markets. We also focused on leadership training as a key element for building a stable, long-term platform for the region’s development. Overall, these initiatives contributed to an organic growth of 11.9% during the year, a sign of strength.”

What were the success factors in the various markets?

“We have held a strong position in South Africa for a number of years. In 2019, we increased our ambitions for the region and expanded our presence in Africa. Initiatives included, for example, investments in growth segments such as long-term care.

In Eastern Europe, we conducted a market analysis and developed specific growth strategies for each market. As a result, we have been able to increase our sales activities and secure a comprehensive network of distributors in these markets.

In recent years, we have also invested in building our own sales organizations in Japan, China and Brazil, among other countries. Here, we are seeing a clear increase in activity and sales, and a strengthened  brand. In these countries, we are also focusing on sharing our knowledge by organizing clinical workshops and training programs.”

What does 2020 and the near future hold for Rest of the World?

“Rest of the World is a diverse region with varying levels of development, which requires varied strategies. In 2020, we will continue to focus on profitable growth and further market expansion, now having set a solid foundation from which to build on. This includes, for example, more investments in our local organizations and a more intense focus on brand-building and training. We are looking forward to a continued strong performance in 2020.”

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Sharnee Farfan
Vice President Marketing,
Rest of the World