Record full year result for FPH: net profit up 82%

News Release
STOCK EXCHANGE LISTINGS: NEW ZEALAND (FPH), AUSTRALIA (FPH)

Record full year result for Fisher & Paykel Healthcare: net profit up 82%

Auckland, New Zealand, 27 May 2021 - Fisher & Paykel Healthcare Corporation Limited today
announced its results for the full year ended 31 March 2021. Operating revenue was $1.97 billion,
up 56% or 61% in constant currency. Net profit after tax was $524 million, up 82% over the previous
financial year, or 94% in constant currency.

Managing Director and CEO Lewis Gradon said, “It has been an extraordinary year and we want to
thank healthcare professionals for giving their all to care for patients, often under the most difficult
conditions. We also want to acknowledge the people of Fisher & Paykel Healthcare for their
commitment to delivering for our customers, and the partners and families of our employees for the
invaluable contribution they have made.

“The unprecedented result was driven by our Hospital product group, which includes Optiflow and
Airvo systems used to deliver nasal high flow therapy. Sales of our Hospital hardware and
consumables have continued to track COVID-19 hospitalisation surges in countries around the
world,” said Gradon.

Revenue for the Hospital product group was $1.50 billion, an increase of 87% over the previous
financial year, or 94% in constant currency. Hospital products made up 76% of the company’s
operating revenue.

“Although COVID-19 restrictions impacted sleep clinics and reduced OSA diagnosis rates, revenue
for the Homecare product group was $466 million, an increase of 2% over the previous year, or 4%
in constant currency.

“Gross margin decreased by 295 basis points for the year to 63% or a 165 basis points decline in
constant currency. This includes increased freight costs and high airfreight utilisation, which
adversely impacted constant currency gross margin by approximately 230 basis points. Freight and
additional COVID-19 related costs were offset by overhead leverage due to volume increases
outpacing cost growth during the year.

“To recognise the incredible contributions of our people, the Board has approved a profit-sharing
bonus totalling $29 million for the 2021 financial year to be paid to everyone who has worked with us
for a qualifying period. The company has also committed $20 million to establish the Fisher & Paykel
Healthcare Foundation during the 2021 financial year. The Foundation’s charitable purposes include
supporting and funding health research and programmes that improve access to healthcare,
supporting environmental protection initiatives and promoting awareness of opportunities in science,
technology, engineering and mathematics. The value of our total donations for the year, including
product donations, was $26 million,” said Gradon.

Dividend
The company’s directors have approved a final dividend of 22.0 cents per share, an increase of 42%
on the final dividend last year. This brings the total dividend for the year to 38.0 cents per share, an
increase of 38%. The final dividend, carrying full New Zealand imputation credit, will be paid on 7 July
2021 with a record date of 25 June 2021.

No guidance provided for the 2022 financial year
With the ongoing uncertainties of vaccinations, lockdowns, COVID-19 variants, localised waves and
return to stable hospitalisation rates around the world, the company is not providing guidance for the
2022 financial year.

“We expect our Hospital and Homecare revenue for FY22 to be impacted by the number of COVID-
19 related hospitalisations around the world,” said Gradon.

“There is a wide range of scenarios for both the timing of a ‘return to normal’ and to what extent a
return to normal includes COVID-19 endemic hospitalisations. It is unclear at this stage when and if
other respiratory hospitalisations and surgical procedures will return to pre-COVID levels, or whether
countries will increase their investment in healthcare infrastructure.”

Observations
Given the wide range of scenarios and uncertainties, the company makes the following observations
in relation to the 2022 financial year:
 A global vaccine rollout during FY22 is likely to reduce global hospitalisations requiring
respiratory support for COVID-19 compared to FY21.
 Achieving similar Hospital consumable volume in FY22 compared to FY21 with reduced
respiratory hospitalisations and reduced invasive ventilation will require a change of clinical
practice towards utilisation of nasal high flow therapy for general respiratory support.
 Hospital hardware revenue maintaining a pre COVID-19 level in FY22, after 337% Hospital
hardware growth in FY21, requires ongoing intensive care ventilator sales by global ventilator
manufacturers, and/or an ongoing change in clinical practice to provide nasal high flow therapy
for respiratory support, or localised COVID-19 surges.
 Local COVID-19 related hospitalisation surges in FY21 have tended to result in increased
hardware sales and increased utilisation of existing hardware. If there are further local
hospitalisation surges during FY22, a similar trend would favourably impact the company’s
Hospital hardware and consumable sales and continue to build the installed base.
 OSA mask sales growth is impacted by diagnosis rates and access to healthcare professionals
and providers to demonstrate the company’s new mask ranges.
 Our customers’ stocking and de-stocking choices in response to the pandemic are likely to vary
over time.
 In gross margin, freight costs are likely to remain elevated, and air freight a higher proportion of
freight. The company also expects to retain its COVID-19 safety practices on its manufacturing
sites.
 The company will continue advancing manufacturing capacity and facilities and hold higher
levels of inventory to ensure any surge demand can be met.
 The company expects to continue growing its investment in R&D and SG&A as longer-term
projects are accelerated and sales support is provided for the growing installed base of nasal
high flow systems.

In the financial year so far, Hospital revenue continues to remain variable with higher volumes of
Hospital hardware and consumables to locations with hospitalisation surges and an ongoing shift
towards Optiflow nasal high flow therapy. OSA shows signs of recovery after a slower fourth quarter.
The company also makes the following longer-term observations:
 The pre COVID-19 trend towards more usage of nasal high flow therapy for general respiratory
support is expected to continue, but the company has no basis for a prediction or forecast of the
rate at which this will continue. The company does not expect all hardware placed in response
to COVID-19 to be immediately transitioned to general respiratory support in an environment
where COVID-19 hospitalisations are reducing.
 Extensive pandemic-related medical practitioner familiarity, and throughout-hospital acquisition
of our hardware devices substantially reduces the barriers to hospitals utilising nasal high flow
therapy for a broader and more extensive range of patients requiring respiratory support.
 Growth in the output of peer reviewed clinical data and clinical practice guidelines over time
supporting nasal high flow therapy for use in more general patient populations facilitates a
change in clinical practice.
 Growth in Home respiratory support has historically tracked hospital usage of nasal high flow.
This trend was present in FY21 and may have included treatment of COVID-19 patients.
“We have been amazed by healthcare professionals around the world, who have responded with
such incredible care and courage to the COVID-19 pandemic. We would also like to express our
thanks and admiration for the energy and dedication shown by our people during this challenging
year,” Gradon concluded.

Overview of key results for the 2021 financial year
 82% growth in net profit after tax to a record $524.2 million.
 56% growth in operating revenue to $1.97 billion, 61% growth in constant currency.
 87% growth in Hospital operating revenue to $1.50 billion, 94% growth in constant currency.
 49% constant currency revenue growth for new applications consumables; i.e. products used in
noninvasive ventilation, Optiflow nasal high flow therapy and surgical applications, accounting for
66% of Hospital consumables revenue.
 2% growth in Homecare operating revenue, 4% growth in constant currency.
 Investment in R&D was 7% of revenue, or $136.7 million.
 42% increase in final dividend to 22.0 cps (2020: 15.5 cps).

About Fisher & Paykel Healthcare
Fisher & Paykel Healthcare is a leading designer, manufacturer and marketer of products and
systems for use in acute and chronic respiratory care, surgery and the treatment of obstructive sleep
apnea. The company’s products are sold in over 120 countries worldwide. For more information
about the company, visit our website www.fphcare.com.

Ends

Media & Investor Contacts:
Karen Knott
General Manager - Corporate Communications
karen.knott@fphcare.co.nz
+64 21 713 911
Hayden Brown
Investor Relations Manager
hayden.brown@fphcare.co.nz
+64 27 807 8073

Authorised by Fisher & Paykel Healthcare Corporation Limited’s Board of Directors.

Accompanying Documents
Attached to this news release are the following additional documents:
 Results in Brief
 Annual Report 2021
 Investor Presentation 2021
 NZX Results Announcement
 NZX Distribution Notice

Constant Currency Information
Constant currency information included within this news release is non-GAAP financial information,
as defined by the NZ Financial Markets Authority, and has been provided to assist users of financial
information to better understand and track the company’s comparative financial performance without
the impacts of spot foreign currency fluctuations and hedging results and has been prepared on a
consistent basis each year. A constant currency analysis is included on page 103 of the company’s
Annual Report 2021, and the company’s constant currency framework can be found on the
company’s website at www.fphcare.com/ccf.

Full Year Results Conference Call
Fisher & Paykel Healthcare will host a conference call today to discuss the results for the 2021
financial year. The conference call is scheduled to begin at 10:00am NZST, 8:00am AEST Thursday
27 May (5:00pm USEDT, Wednesday 26 May) and will be webcast simultaneously over the Internet.

To listen to the webcast, access the company’s website at www.fphcare.com/investor. An online
archive of the event will be available approximately two hours after the webcast and will remain on
the site for two weeks.

To attend the conference call, participants should dial in to one of the numbers below at least
five minutes prior to the scheduled call time and identify yourself to the operator. When prompted,
please quote the conference code of: 483205.

New Zealand +64 9 913 3624 US/Canada +1 929 477 0338
Australia +61 2 9193 3719 Hong Kong +852 3008 1533
United Kingdom +44 330 336 9104 International +64 9 913 3624


2021 Investor Series
Fisher & Paykel Healthcare will also hold a virtual Investor Series over three days between 1 June
and 3 June 2021 (NZST). The Investor Series will provide participants with the opportunity to hear
from management based in New Zealand and the United States on the company’s technology and
therapies and gain further insights into the company’s strategy for long-term sustainable profitable
growth. The series will be presented via webcast through three one-hour presentations over three
days including Q&A sessions with management. To find out further information and register for the
event, please visit www.fphcare.com/investor-series/

---

Results in Brief



Year Ended Year Ended
% Change
(Reported)
% Change
(Constant
Currency
1
)
31-Mar-20 31-Mar-21
NZ$M NZ$M
(except as otherwise
stated)
(except as otherwise
stated)
FINANCIAL PERFORMANCE



Total operating revenue 1,263.7 1,971.2 +56% +61%
Cost of sales (427.9) (725.6) +70% +69%
Gross profit 835.8 1,245.6 +49% +57%
Gross margin 66.1% 63.2% -295bps -165bps
Selling, general and administrative expenses (338.0) (396.6) +17% 20%
Research and development expenses (118.5) (136.7) +15% +15%
R&D percentage of operating revenue 9.4% 6.9% -244bps -
Total operating expenses (456.5) (533.3) +17% +19%
Operating profit before financing costs 379.3 712.3 +88% +104%
Operating margin 30.0% 36.1% +612bps +782 bps
Net financing (expense) (8.8) 5.9 -167% -
Profit before tax 370.5 718.2 +94% +104%
Tax expense (83.2) (194.0) +133% +137%
Profit after tax 287.3 524.2 +82% +94%
Effective tax rate 22.5% 27.0%

Effective tax rate excluding R&D tax credit and re-
introduction of building depreciation
27.5% 28.8%




Revenue by Region:




North America 571.2 825.7 +45%
Europe 365.4 633.8 +73%
Asia Pacific 273.3 348.4 +27%
Other 53.8 163.3 +204%
Total 1,263.7 1,971.2 +56%




Revenue by Product Group:



Hospital 801.3 1,498.1 +87%
Homecare 457.3 465.6 +2%
Core products sub-total 1,258.6 1,963.7 +56%
Distributed and other 5.1 7.5 +47%
Total 1,263.7 1,971.2 +56%

FINANCIAL POSITION



Tangible assets 1,270.4 1,913.7 +51%
Intangible assets
2
164.6 161.3 -2%
Total assets 1,435.0 2,075.0 +45%
Total liabilities (461.2) (554.1) +20%
Shareholders’ equity 973.8 1,520.9 +56%
Gearing -4.3% -27.2%

Net tangible asset backing (cents per share) 141 236 67%


1
Constant currency (CC) removes the impact of exchange rate movements. This approach is used to assess the Group’s underlying
comparative financial performance without any impact from changes in foreign exchange rates. The company’s constant currency
framework can be found on the company’s website at www.fphcare.com/ccf. The reconciliation to reported results is included within
the Financial Commentary section of the Annual Report.
2
Includes Intangible and deferred tax assets.

Results in Brief
(continued)



Year Ended Year Ended
% Change
31-Mar-20 31-Mar-21
NZ$M NZ$M
(except as otherwise
stated)
(except as otherwise
stated)



CASH FLOWS



Net cash flow from operating activities 321.4 625.3 +95%
Net cash flow (used in) investing activities (155.7) (387.3) +149%
Net cash flow (used in) financing activities (159.0) (188.0) +18%



SHARES OUTSTANDING


Weighted average basic shares outstanding 574,192,388 575,650,376
Weighted average diluted shares outstanding 579,049,643 579,588,262
Basic shares outstanding at year end 574,570,603 576,412,532


DIVIDENDS AND EARNINGS PER SHARE


Dividends per share (cents) - declared 27.5 38.0 +38%
Basic earnings per share (cents) 50.0 91.1 +82%

---

Annual Report 2021
THERE, TOGETHER
WHEN IT COUNTS
A H U M A N
RESPONSE

About this report
Constant currency information contained within this report is
non-conforming financial information, as defined by the NZ FMA,
and has been provided to assist users of financial information to
better understand and assess the company’s financial performance
without the impacts of foreign currency fluctuations and hedging
results. It has been prepared on a consistent basis each financial
year. A reconciliation between reported results and constant
currency results is available on page 103. The company’s constant
currency framework can be found on our website at
www.fphcare.com/ccf.
SCOTT ST JOHN
BOARD CHAIR
LEWIS GRADON
MANAGING DIRECTOR
AND CHIEF EXECUTIVE OFFICER
Welcome to our 2021 Annual Report – A Human
Response. This report offers a behind-the-scenes
look at the work we have done this year to
improve health and outcomes for patients all
over the world and the financial results we
achieved while doing so.
Our people, investors and customers also want
to know about our track record with regard to
non-financial matters, including environmental,
social and governance (ESG) topics. You will find
our ESG commitments and metrics in Section 4
of this report, called Operating Sustainably.
We have prepared this report to align with the
GRI Core reporting option. We have also
included data on our global carbon footprint
and governance, climate and sustainability risks
in line with the recommendations of the
Taskforce for Climate Related Financial
Disclosure (TCFD).
As always, we welcome your feedback and
suggestions for improvement. Please send any
questions, comments or suggestions to
investor@fphcare.co.nz.
Digital versions of this report, along
with our previous annual, interim and
sustainability reports, are available at
www.fphcare.com/investor-reports.
This report covers the financial year ended
31 March 2021 and is dated 26 May 2021.
The report has been approved by the Board and
is signed on behalf of Fisher & Paykel Healthcare
Corporation Limited by Scott St John, Board
Chair, and Lewis Gradon, Managing Director and
Chief Executive Officer.

WELCOME

020103
THE BUSINESS YEARA HUMAN RESPONSETHE COMPANY
What we do
30
Where we operate
31
How our business works
32
How we deliver value
33
Our unique culture, values and beliefs
34
What matters most
35
Our Board
38
Our Executive Management team
40
Results at a glance
20
Business highlights
21
Report from the Board Chair and CEO
22
Hospital & Homecare performance
26
Guided by our values
6
Life: Keeping people safe
8
Relationships: Sourcing materials
10
Commitment: Expanding capacity
12
Internationalism: Caring for customers
14
Originality: Changing clinical practice
16
2Section 01 | A HUMAN RESPONSEFisher & Paykel Healthcare | ANNUAL REPORT 2021

040506
OPERATING SUSTAINABLYFINANCIALSAPPENDICES
Five year summary
138
Glossary
141
GRI index
142
TCFD framework
144
Directory
145
Financial commentary
100
Financial statements
104
People
44
Community
56
Environment
60
Risk management
66
Governance
74
Remuneration
92
3Section 01 | A HUMAN RESPONSEFisher & Paykel Healthcare | ANNUAL REPORT 2021

Fisher & Paykel Healthcare | ANNUAL REPORT 20214Section 01|A HUMAN RESPONSE

A HUMAN RESPONSE Behind the
scenes in every corner of our
business, our people were doing
their part to answer the global
call for life-sustaining products.
01
5Fisher & Paykel Healthcare | ANNUAL REPORT 2021Section 01 | A HUMAN RESPONSE

BEHIND THE SCENES, all across our
business, our people were doing their
part to answer the global call for
life-sustaining products during a global
pandemic. Our values – life, relationships,
commitment, internationalism and
originality – guided our business
decisions at every turn.
In April 2020, a member of our US sales
team received an email from a customer
in Sioux City, Iowa. Already familiar
with our products, he anticipated the
impact of COVID-19 on our Airvo
TM
team.
It began:
“I would imagine that with the COVID-19
virus about to peak soon, your company
is ramping up production of items
like high flow oxygen systems and the
related supplies that go with them.
Everyone is currently focused on
G U I D E D
B Y O U R
VALUES
LIFE • RELATIONSHIPS • COMMITMENT
INTERNATIONALISM • ORIGINALITY
Fisher & Paykel Healthcare | ANNUAL REPORT 20216Section 01|A HUMAN RESPONSE

“ We, in the
frontlines of
patient treatment,
recognise the
Airvo team as
major unsung
heroes in this
outbreak...
ventilators, but the reality of the situation is that
far fewer patients will need a ventilator over
other therapies, notably the Airvo high flow
oxygen system and others like it.”
Indeed, at the start of the pandemic, healthcare
providers leaned toward early mechanical
ventilation for the most severe patients.
However, a few months in, evidence suggested
high mortality rates for COVID-19 patients on
mechanical ventilators. As our customer had
predicted, healthcare providers pivoted away
from invasive ventilation. One treatment in
particular emerged as a leading frontline
treatment – Fisher & Paykel Healthcare’s
Optiflow
TM
nasal high flow therapy.
With Optiflow, warm, humidified air and oxygen
is administered through the patient’s nostrils.
Patients can remain awake while receiving
Optiflow, so they can talk, eat and drink. They
also can be treated outside the intensive care
unit, which lightens the burden on healthcare
providers. For many patients, Optiflow is
sufficient to maintain oxygen levels that help
them to recover while avoiding the risks of
mechanical ventilation.
As clinicians reported positive results using
Optiflow, Fisher & Paykel Healthcare was
bombarded with requests for devices that
deliver the therapy – namely Airvos and our
MR850 and F&P950 respiratory humidification
systems. Increasing output on these critical
devices has required a massive effort. Behind the
scenes, our people have been there – together
– when it counts.
The email from that customer offered
encouragement our teams needed to keep
people safe, source supplies, boost production,
deliver for customers and change clinical practice.
It concluded: “We, in the frontlines of patient
treatment, recognise the Airvo team as major
unsung heroes in this outbreak. Their
contribution to the pandemic will go unnoticed
by the general public, but certainly not by
respiratory practitioners all over the globe. Hats
off to you and your team for providing research,
product engineering and development along
with the compassion to pull it all together.”

7Fisher & Paykel Healthcare | ANNUAL REPORT 2021Section 01 | A HUMAN RESPONSE

LIFE
Keeping our people
safe and healthy was
top of mind.
Fisher & Paykel Healthcare | ANNUAL REPORT 20218Section 01|A HUMAN RESPONSE

THE GOAL
To protect everyone at
our facilities while outlining
a plan to answer the
global call for products.
EARLY IN THE PANDEMIC, we formed a crisis
response team made of people across the
business. The goal – to protect everyone at
our facilities while outlining a plan to answer
the global call for products. As an essential
service, operations continued during COVID-19
lockdowns. Our health and safety approach
was – and remains – to meet or exceed local
government recommendations.
At our largest manufacturing site in
New Zealand, we have implemented
social distancing, extra cleaning protocols
and Bluetooth contact tracing cards.
Gowning areas, production lines, office areas,
and cafeterias have been rearranged, physical
barriers erected and desks moved to create
more space between people. Occupancy in
meeting rooms is limited. Masks are
mandatory, except when two-metre physical
distancing can be maintained. We have an
onsite clinic staffed by health professionals,
as well as a COVID-19 support team who
assist with contact tracing and answer
questions 24/7.
At our Mexico site, we took preventative
measures to protect our people before the
pandemic arrived in Tijuana. Our Mexico
leaders created a COVID-19 committee to
monitor the pandemic’s impact and implement
safety measures across the facility. This
included masks and goggles, sanitising mats
and cleaning kits. Capacity limits were set for
meeting rooms, and acrylic dividers were
added in manufacturing areas and cafeterias.
During the worst of the pandemic, employees
received essential groceries.
Special leave entitlements have helped to
ensure our people could take time off work
if they needed to self-isolate, and we have
provided discretionary COVID-19-related leave
so that workers could make the right decision
without fear of losing income. These changes
will remain in place until the threat of COVID-19
has diminished.
We recognise that COVID-19 has had an
impact on the wellbeing of our people. We are
continuing to promote counselling services
through the Employee Assistance Programme
and to focus on returning to sustainable
workloads.
9Fisher & Paykel Healthcare | ANNUAL REPORT 2021Section 01 | A HUMAN RESPONSE

RELATIONSHIPS
Our ability to source
materials was a
testament to our
strong supplier
relationships.
MANY OF THE RAW MATERIALS and
components used in Fisher & Paykel
Healthcare products are imported.
Very quickly, the virus impacted
our suppliers around the world.
Thanks to strong supplier
relationships and creative sourcing,
production lines never stopped,
although some components
arrived only one day before they
were needed.
Fisher & Paykel Healthcare | ANNUAL REPORT 202110Section 01|A HUMAN RESPONSE

“ F ailure was not
an option, so
we needed to
work with
sub-suppliers,
and in some
cases, sub-sub
suppliers to make
sure the whole
supply chain was
completely
integrated.”
EDDY PEREIRA
General Manager Transformation
and Optimisation
Senior research and development manager
Phil Edgeworth recalled some of the challenges
at the start of the pandemic.
“We had a problem obtaining enough power
circuit boards, and we had to work out an
alternative within three months.”
Edgeworth said that in 24 years of working for
the company, he has never seen so much help
and collaboration from suppliers. In fact, two
essential suppliers of custom mechanical and
electrical builds changed to a 24/7 shift pattern
just to supply Fisher & Paykel Healthcare.
The situation became even more difficult
when the United States prioritised supplies to
companies making ventilators. There are more
than 300 components in one Airvo device, and
Fisher & Paykel Healthcare was competing with
ventilator manufacturers for the same parts.
“The components come from multiple sources,
and you need every single one to make it,” said
Eddy Pereira, general manager transformation
and optimisation. “Failure was not an option, so
we needed to work with sub-suppliers, and in
some cases, sub-sub suppliers to make sure the
whole supply chain was completely integrated.”
“Freight became a nightmare,” said procurement
manager Sheleen Ellis. “We had congestion and
delays at ports as everyone was trying to move
things in a different manner.”
With most planes grounded and sea
freight too slow to be useful, the team had to
be creative and adaptable to import materials
and ship finished goods. At one point, a single
box of critical filter parts was on a Singapore
Airlines plane facing eight weeks on the ground
in Dubai. The box had to be extracted from the
airport, flown back to Europe, and then sent
on to New Zealand – and all of that activity was
arranged through multiple third parties.
Supply planning manager Jacquelene Bycroft
has watched Fisher & Paykel Healthcare grow
during her 20 years with the company. She said
she has never been in a situation like the
pandemic before.
“It’s about people’s lives,” she said. “Years ago
when I worked on the manufacturing line, that’s
the first thing I learned. COVID-19 has been
really, really stressful, but we had to do it.”
11Fisher & Paykel Healthcare | ANNUAL REPORT 2021Section 01 | A HUMAN RESPONSE

COMMITMENT
Adding shifts
and people,
we expanded
our manufacturing
capacity in
record time.
INCREASING PRODUCTION this year
required more space and more people.
Working collaboratively, our teams
in Mexico and New Zealand relocated
existing manufacturing lines and
created new ones for essential
products. Worldwide, our human
resources team recruited several
thousand full-time and temporary
workers and managed their induction
and training.
Fisher & Paykel Healthcare | ANNUAL REPORT 202112Section 01|A HUMAN RESPONSE

Mexico
MR290 chambers are a central part of
Fisher & Paykel Healthcare’s humidification
devices, and demand surged for these parts.
Our Mexico and New Zealand teams worked
together to tackle a major challenge: set up
a brand-new MR290 chambers production
line in our Tijuana, Mexico facility while working
within COVID-19 health guidelines.
Senior project engineer Karen Guerrero in
Mexico and senior process development
manager Ian Russell from New Zealand led the
project. It required installing and validating
128 pieces of equipment, creating operations
and processes, reviewing documents and
recruiting and training people. To ensure safety,
the core project team, which included specialists
from both Mexico and New Zealand, spent ten
days in isolation. They stayed at a nearby hotel
in Tijuana, away from family and friends, to avoid
any risk of infection.
In April 2020, the first chambers rolled off the
new line, ready to be shipped to help patients
in North America.
Diana Tenorio Sanchez was one of the new line’s
team leaders. “It was challenging to stay away
from family for almost a month,” she said, “but
we made the sacrifice because we knew our
products were helping to fight COVID-19.”
New Zealand
New Zealand’s first lockdown was announced
just as our fourth New Zealand manufacturing
facility, the Daniell Building, was completed.
Before the pandemic, the plan had been to
move office teams into the building first, then
fit-out the manufacturing areas the following
year. That plan was brought forward by the
need to increase production quickly on Airvos
and consumables.
It took intense planning to complete validations
for the new controlled work environment,
disassemble and reassemble equipment, and
relocate teams. Process development and
moulding engineers went into overdrive to build
tools, install machinery and wire equipment.
Within three months, the Daniell Building was
the new home for several new manufacturing
lines for OSA products and much-needed adult
breathing circuits. Experienced team members
were cross-trained, in the event a case of
COVID-19 on site breached a production bubble.
Manufacturing team leader Seta Vaka said
keeping people safe has been her priority as
new people have been added and trained.
“Even at break times we’re checking to make
sure people are keeping their distance while
they’re eating,” she said.
13Fisher & Paykel Healthcare | ANNUAL REPORT 2021Section 01 | A HUMAN RESPONSE

INTERNATIONALISM
Our global sales
teams found new
ways to deliver for
our customers.
Fisher & Paykel Healthcare | ANNUAL REPORT 202114Section 01|A HUMAN RESPONSE

“ At 5:30AM on a
Saturday morning,
car after car of
warehouse and
leadership team
members were
pulling up to work.
We had the stock
processed and
ready for Monday
morning to ship
directly to hospitals
with patients in
critical care.”
NICHOLAS WADE
Manager, Distribution Centre
Kentucky USA
WORKING IN MORE THAN 40 COUNTRIES,
our sales representatives had to navigate
lockdowns and personal challenges to get
products to the people helping patients.
Our humidification devices were delivered
to hospitals in large numbers, and dozens
were assembled at a time.
North America
“When COVID-19 hit, our two priorities were
keeping our employees safe and then keeping
our distribution channels open,” said Justin
Callaghan, president of North America
operations.
The US team devised an allocation process
to identify which hospitals needed products
the most. Citing publicly available statistics and
feedback from sales representatives, his team
persuaded customers to accept two weeks
of stock at a time when some wanted enough
for six months.
“We were one of the few companies
approaching it that way,” said Callaghan.
“But ultimately customers said it was fantastic.
We managed to stay true to our approach,
and it was successful.”
Northeast regional manager Michael Krumholz
said that when hospital supplies dwindled, he
and his team delivered every product they had.
At our distribution centre in Kentucky,
manager Nicholas Wade and his team worked
overtime and weekends to sort stock and
process orders. Everyone pitched in to support
their work.
“At 5:30AM on a Saturday morning, car after
car of warehouse and leadership team
members were pulling up to work,” said Wade.
“We had the stock processed and ready for
Monday morning to ship directly to hospitals
with patients in critical care.”
Europe
In June 2020, sales teams in Belgium and
Luxembourg noticed a disturbing trend.
While some hospitals had increased their use
of Optiflow, others had decreased their use.
They acted promptly to alert key opinion
leaders, who influenced hospitals about the
benefits of using nasal high flow therapy to
treat patients with COVID-19.
When a second wave arrived in October,
the Belgian government asked hospitals
to urgently create 300 beds outside the
ICU with access to Optiflow. As a result, in
November we provided a large number of
devices to local hospitals. The small team
had to manage the ordering, follow up on
deliveries and train users.
“Our amazing people, from the production
lines, through to logistics, warehouse, sales and
customer services teams – all played a major
role in helping our clinical teams at the front
line,” said business manager Benoit Collet.

15Fisher & Paykel Healthcare | ANNUAL REPORT 2021Section 01 | A HUMAN RESPONSE

ORIGINALITY
We relied on new
approaches to inform
healthcare providers
and influence
clinical practice.
Fisher & Paykel Healthcare | ANNUAL REPORT 202116Section 01|A HUMAN RESPONSE

Nurse Karin
Kuperus at Nij
Smellinghe
Hospital in The
Netherlands sets
up an Airvo.
Photo: Annemarie Boonstra
IT CAN TAKE YEARS TO CREATE A NEW PRODUCT
and decades more to help change clinical
practice in the medical community. Sam Frame,
marketing manager for the Airvo product
team, said that many clinicians were already
familiar with nasal high flow therapy, but
many were hesitant to try it for treating
COVID-19 patients. In part, this was because
of misinformation circulating about how the
virus spread.
“In some countries, health services wrote into
policy that all patients with COVID-19 would be
intubated, meaning placed on a mechanical
ventilator,” said Frame. “That’s what some
patients needed, but in many cases, it’s not a
good idea when you can give them noninvasive
respiratory support.”
Unlike mechanical ventilation, nasal high flow
therapy delivers respiratory support through a
nasal interface. For all but the sickest patients,
it is more comfortable and less traumatic than
intubation using a ventilator, which is an
aggressive solution that requires sedation.
Lisa Henderson, sales and customer education
manager, said the speed of the pandemic
left clinicians with little time for researching
patient treatments.
“Clinicians generally say that they practice
evidence-based medicine, but during COVID-19
that term was thrown out the door a bit,” she
said. “Some treatments were in use because of
perception, not data. Perception can only
change through data and education.”
Henderson and her team moved quickly to
revamp the online education hub on the
company website, adding links to research
studies, courses and training videos. They
identified key opinion leaders – who
understood the benefits of nasal high flow
therapy and were powerful speakers – and
featured them in a series of webinars. Our sales
representatives were able to access these new
resources and recommend them to customers.
As clinicians learned more about COVID-19 and
how it spread, they pivoted toward using nasal
high flow therapy as the first line of treatment.
In March 2021, the European Respiratory
Society released best-practice guidelines for
treating hospitalised COVID-19 patients. These
recommended that, wherever possible, doctors
use alternatives to ventilators, such as nasal
high flow oxygen or tight-fitting face masks.

17Fisher & Paykel Healthcare | ANNUAL REPORT 2021Section 01 | A HUMAN RESPONSE

18Fisher & Paykel Healthcare|ANNUAL REPORT 2021Section 02 | THE BUSINESS YEARFisher & Paykel Healthcare | ANNUAL REPORT 202118

THE BUSINESS YEAR Our business
was positioned at the right place
at the right time to respond to a
global pandemic, resulting in a
year like no other.
02
19Fisher & Paykel Healthcare | ANNUAL REPORT 2021Section 02 | THE BUSINESS YEAR19Fisher & Paykel Healthcare | ANNUAL REPORT 2021

OPERATING REVENUE
$1.97b
▲

56% | 2020 $1.26B
GROSS MARGIN
63.2%
295 BASIS POINTS DECREASE
HOSPITAL REVENUE
$1.5b
▲

87% | 2020 $801.3M
NET PROFIT AFTER TAX
$524.2m
▲

82% | 2020 $287.3M
TOTAL DIVIDEND FOR YEAR
FULLY IMPUTED
38.0cps
▲

38% | 2020 27.5CPS
HOSPITAL HARDWARE
REVENUE GROWTH
337%
( CONSTANT CURRENCY)
SPEND ON R&D
$136.7m
7% OF OPERATING REVENUE
NEW APPLICATIONS CONSUMABLES
REVENUE GROWTH
49%
( CONSTANT CURRENCY)
Results at a glance
20Fisher & Paykel Healthcare | ANNUAL REPORT 2021Section 02 | THE BUSINESS YEARFisher & Paykel Healthcare | ANNUAL REPORT 202120

IMPACTED the lives of
approximately 20 million
patients around the world,
including millions treated for
COVID-19.
LAUNCHED myAirvo 2 in
China, along with Optiflow+
interfaces and AirSpiral tubes
for home use.
RELEASED F&P 950 in
Canada and South Africa.
COMMITTED $20 million
to establish the Fisher & Paykel
Healthcare Foundation.
PLACED sales representatives
in a further five countries.
INCREASED manufacturing
output by more than six times
for some of our key hospital
products.
RECOGNITION
American Association of
Respiratory Care
ZENITH AWARD
American Chamber of Commerce
DHL Express
SUCCESS & RESILIENCE AWARD
Auckland Transport
TRAVELWISE CHOICES AWARD
Deloitte New Zealand
2020 COMPANY OF THE YEAR
Deloitte New Zealand
2020 CEO OF THE YEAR
Designers Institute of NZ
Best Awards
TWO GOLD PINS
INFINZ
MARKET LEADERS BEST INVESTOR
RELATIONS AWARD 2020
Dow Jones Sustainability Index
for 2020
FTSE4 Good Index 2020
OPERATING REVENUE
NZ$ MILLIONS
NET PROFIT AFTER TAX
NZ$ MILLIONS
REVENUE BY PRODUCT GROUP
12 MONTHS TO 31 MARCH 2021
REVENUE BY REGION
12 MONTHS TO 31 MARCH 2021
120+
COUNTRIES
Hospital
Homecare
Distributed & Other
North America
Europe
Asia Pacific
Other
76%
<1%
24%
42%
32%
18%
8%
1718192021
1,971.2
894.4
1,070.4
1,263.7
980.8
1718192021
524.2
169.2
209.2
287.3
190.2
BUSINESS HIGHLIGHTS
21Fisher & Paykel Healthcare | ANNUAL REPORT 2021Section 02 | THE BUSINESS YEAR21Fisher & Paykel Healthcare | ANNUAL REPORT 2021

Report from the
Chair and CEO
We have been amazed by healthcare
professionals around the world, who
have responded with such incredible
care and courage to the COVID-19
pandemic. Our thoughts are with
them, the patients under their care,
and the families of those who are
impacted at this challenging time.
We would also like to express our thanks
and admiration for the energy and dedication
shown by our people during this tough year.
Behind the scenes in every corner of our
business, our people were doing their part
to answer the global call for life-sustaining
products.
For most of us, this meant juggling work, home
and family responsibilities through upheavals
and uncertainty. For some, it meant stepping
into completely new roles, volunteering to get
things done, and working day and night to
meet the needs of our customers. Operating
during a pandemic tested our resilience, but it
also proved we can adapt to change.
RESPONSE TO COVID-19
Early in the pandemic, we formed a crisis
response team drawn from all areas of the
business. The goal – to protect everyone at our
facilities and outline a plan to meet the global
demand for products. We developed a strategy
founded on three principles: keeping our
people and workplace safe, keeping operations
stable, and keeping processes sustainable.
Our health and safety approach was – and
remains – more conservative than local
government recommendations. The strategy
has served us well, and manufacturing
operations in New Zealand and Mexico have
continued with few disruptions.
As we mentioned in November, demand for
some of our products increased by four or
five times during COVID-19 surges. Increasing
output on essential devices required a massive
effort. We had to fast-track new facilities, work
with new suppliers, qualify new parts and
materials, add people and shifts, and connect
with customers in new ways.
SCOTT ST JOHN
Board Chair
LEWIS GRADON

Managing Director
and Chief Executive Officer
22Fisher & Paykel Healthcare | ANNUAL REPORT 2021Section 02 | THE BUSINESS YEARFisher & Paykel Healthcare | ANNUAL REPORT 202122

STRONG RESULT FOR FY21
Working under the most challenging
conditions, our people maintained their focus
on improving care and outcomes for patients.
It was a year like no other – and Fisher & Paykel
Healthcare achieved an extraordinary result.
Operating revenue for the 2021 financial year
was $1.97 billion, 56 per cent higher than the
previous financial year, or 61 per cent in
constant currency. Net profit after tax was
$524.2 million, 82 per cent higher than the
previous financial year, or 94 per cent in
constant currency.
The unprecedented result was largely driven
by the Hospital product group. This includes
products for invasive ventilation, noninvasive
ventilation and surgery, as well as the
hardware and consumables used to deliver
Optiflow nasal high flow therapy. Revenue
for the Hospital product group was $1.5 billion,
an increase of 87 per cent over the previous
financial year, or 94 per cent in constant
currency.
Although COVID-19 restrictions shut down
sleep clinics and impacted OSA diagnosis
rates, revenue for the Homecare product
group increased by 2 per cent over the
previous financial year, or 4 per cent in
constant currency. Revenue for the full financial
year was $465.6 million, assisted by continued
strong growth in our products used for nasal
high flow therapy in the home.
As expected, COVID-19 impacted our costs
for the full financial year. Gross margin
decreased by 295 basis points for the year to
63% or a 165 basis points decline in constant
currency. This includes increased freight costs
and high air freight utilisation which adversely
impacted constant currency gross margin by
approximately 230 basis points. Freight and
additional COVID-19 related costs were offset by
overhead efficiencies due to volume increases
outpacing overhead cost growth during the year.
STRATEGIC PROGRESS
For the most part, COVID-19 was kept out of
the community in New Zealand. This was a
significant advantage for our business, because
it meant our more than 650 engineers and
clinical scientists could continue their everyday
work at our Auckland campus. We were
unwavering in our commitment to research and
development during the 2021 financial year and
invested $136.7 million for that purpose.
Our marketing and sales teams, many of whom
were working remotely, continued to support
the release of products into new markets.
During the second half of the year, we
introduced myAirvo 2 in China, along with
the consumables required to deliver Optiflow
therapy at home. We also expanded the release
of our Evora compact nasal mask for OSA into
Brazil and Spain.
To extend our global reach, we placed our own
sales representatives in a further five countries.
A direct sales presence in these countries will
help us focus on changing clinical practice
through strong relationships with customers.
The pandemic strengthened our relationships
with key opinion leaders, and many of them
have spoken publicly about their success using
nasal high flow therapy to treat COVID-19
patients. The increased focus on nasal high
flow therapy has accelerated the adoption of
Optiflow in a way we could not have predicted.
In November 2020, the Intensive Care Medicine
journal published a clinical practice guideline
with a strong recommendation for using nasal
high flow in cases of hypoxemic respiratory
failure compared to conventional oxygen
therapy.* We expect the body of evidence to
multiply as retrospective studies are completed
and patient data is analysed.
* Rochwerg B, et al. Intensive Care Medicine. 2020.
23Fisher & Paykel Healthcare | ANNUAL REPORT 2021Section 02 | THE BUSINESS YEAR23Fisher & Paykel Healthcare | ANNUAL REPORT 2021

LOOKING AHEAD
We have always taken a long-term view.
COVID-19 may have changed the way we live,
work and connect with each other, but it did
not change our strategy. Our fundamental
objective is to grow our business in a
sustainable, profitable way by creating better
products, extending our global reach and
changing clinical practice.
Our business was positioned at the right place,
at the right time, to respond to a global
pandemic, and this was not down to chance.
The work to research, develop and prove the
benefits of our products and therapies started
more than fifty years ago. It continues today,
so that we will be ready to meet the needs of
patients ten years and more from now.
Looking ahead, we remain confident about
our long-term future. Hospitals worldwide
have purchased Fisher & Paykel Healthcare
hardware and consumable products, and their
staff are now trained to administer nasal high
flow therapy. While our hardware sales are
unlikely to be repeated in the 2022 financial
year, a change in clinical practice may have
been accelerated.
Importantly, nasal high flow therapy is not
only for treating COVID-19 patients – it has
applications across a broad range of patients
requiring respiratory support. Educating
clinicians on its benefits for patients in
hospitals and homes will be a key area of
focus during the next few years.
The additional revenue generated in the
2021 financial year allows us to continue
growing our investment in R&D and our sales
teams as we bring forward some of our longer
term projects and support the growing
installed base of nasal high flow systems.
We also remain confident in our innovative
product portfolio for treating patients with
obstructive sleep apnea. When sleep clinics
fully reopen and customers can see our new
OSA masks in person, we expect these
products to continue to perform well.
COMMUNITY
One of the hallmarks of a successful business
is looking after the wider community. Through
a combination of financial and in-kind support,
we facilitate and sponsor various community
programmes each year – from funding clinical
research to supporting science, technology
engineering and mathematics (STEM)
programmes for young people.
We have always taken a
long-term view. COVID-19
may have changed the way
we live, work and connect
with each other, but it did not
change our strategy. Our
fundamental objective is to
grow our business in a
sustainable, profitable way by
creating better products,
extending our global reach
and changing clinical practice.
24Fisher & Paykel Healthcare|ANNUAL REPORT 2021Section 02 | THE BUSINESS YEARFisher & Paykel Healthcare | ANNUAL REPORT 202124

In the 2021 financial year, we committed
$20 million to establish the new Fisher & Paykel
Healthcare Foundation. This charitable
organisation has been established to enable
a more sustainable model for funding of
community and charitable activities. The
Foundation’s purposes include supporting
and funding health research, programmes that
improve access to healthcare, environmental
protection initiatives and promoting awareness
of opportunities in STEM.
BOARD UPDATE
During the year, Scott St John was appointed
to chair the Board following Tony Carter’s
retirement and Neville Mitchell was appointed
chair of the Audit & Risk Committee. We are
progressing well in the process to find a
replacement director with the necessary skills
and experience to complement other members
of the Board, and expect to provide an update
later this year.
DIVIDEND
Our consistent practice has been to pay a
dividend to shareholders. In light of this year’s
financial performance, the Board has approved
a final dividend of 22 cents per share. This
takes the total dividend for the full financial
year to 38 cents per share. This is a 38 per cent
increase on the total dividend for FY20 and
enables us to continue making our accelerated
investments in manufacturing capacity and
buildings. The final dividend will be paid out
on 7 July 2021.
THANK YOU
In closing, we want to thank our customers
and clinical partners for giving their all to
care for patients, often under the most
gruelling conditions.
We also want to acknowledge the more
than 6,000 people of Fisher & Paykel
Healthcare, as well as their partners and
families, because they all made this
extraordinary year possible. Because of their
efforts, our products were used to treat an
estimated 20 million patients during the 2021
financial year. To recognise their contribution,
the Board has approved for this year a
profit-sharing bonus totalling $29 million for
everyone who has worked with us for a
qualifying period.
We appreciate our suppliers for providing
the raw materials and components we so
desperately needed to make our products,
and the government officials who intervened
when borders were closed and freight
options limited.
As always, we are grateful to our shareholders
for believing in our purpose, our strategy and
our team.
SCOTT ST JOHN
Board Chair
LEWIS GRADON
Managing Director and Chief Executive Officer
25Fisher & Paykel Healthcare | ANNUAL REPORT 2021Section 02 | THE BUSINESS YEAR25Fisher & Paykel Healthcare | ANNUAL REPORT 2021

Hospital
76%
OF OPERATING REVENUE
CONSTANT CURRENCY REVENUE FROM
NEW APPLICATIONS CONSUMABLES
49%
OPERATING REVENUE
$1.5B
87%
Invasive ventilation
Our products for invasive ventilation provide
warm, humidified air to patients with bypassed
airways. This can help maintain the natural
balance of heat and moisture in the airways.
Noninvasive ventilation
Noninvasive ventilation is a therapy which
provides airway support for patients through
a face mask. Heated and humidified gas flows
can improve patient comfort and compliance,
reduce airway drying and improve secretion
clearance.
Optiflow nasal high flow therapy
Nasal high flow is a respiratory care therapy
delivering high flows of air and oxygen through
a unique F&P Optiflow™ nasal cannula. This
allows comfortable, effective delivery of up to
100% oxygen for patients in mild to moderate
respiratory distress.
Surgical technologies
Our surgical products provide warm,
humidified CO
2
during surgery, which may
protect patients from hypothermia and
post-operative pain and reduce the risk of
surgical site infections, adhesions and cancer
metastasis.
26Fisher & Paykel Healthcare | ANNUAL REPORT 2021Section 02 | THE BUSINESS YEARFisher & Paykel Healthcare | ANNUAL REPORT 202126

Homecare
24%
OF OPERATING REVENUE
CONSTANT CURRENCY
REVENUE
4%
OPERATING REVENUE
$465.6M
2%
CPAP therapy
Our range of CPAP machines and masks
support patients with obstructive sleep
apnea. Our masks have become well
known for their comfort, simplicity and
ease of use, which is a key factor in patient
compliance. Our patient management
and support tools complete a seamless
experience to help patients succeed in
embracing therapy.
Home respiratory support
We have taken our expertise in nasal high
flow therapy and noninvasive ventilation
from the hospital to offer respiratory
support in the home and in long-term care
settings, with the intention of improving
patients’ quality of life and reducing
hospital admissions. The F&P myAirvo™
device provides flows of humidified air,
which can contain supplemental oxygen
if necessary through an Optiflow nasal
cannula or tracheostomy connector, and is
used for patients with chronic respiratory
conditions such as COPD or bronchiectasis.
27Fisher & Paykel Healthcare | ANNUAL REPORT 2021Section 02 | THE BUSINESS YEAR27Fisher & Paykel Healthcare | ANNUAL REPORT 2021

Fisher & Paykel Healthcare | ANNUAL REPORT 202128Section 03|THE COMPANY

THE COMPANY For many years, our
strategy has been consistent, centred
on our purpose of improving care
and outcomes through inspired and
world-leading healthcare solutions.
03
29Fisher & Paykel Healthcare | ANNUAL REPORT 2021Section 03 | THE COMPANY

Fisher & Paykel Healthcare is a leading
designer, manufacturer and marketer
of products and systems for use in
acute and chronic respiratory care,
surgery and the treatment of
obstructive sleep apnea.
What we do
Our medical devices and technologies help
clinicians deliver the best possible patient
care. They enable patients to transition into
less-acute care settings, recover more quickly
and avoid more serious conditions.
Because of our products and therapies,
many patients can be treated in the comfort
of their own homes instead of in the hospital.
Not only does this make life better for the
patient, it reduces costs for the world’s
healthcare systems.
Product innovation has been the cornerstone
of our success since 1969, when the first
prototype respiratory humidifier was
developed. Today, we are still striving to lead
the way in the development of medical devices
and technologies by continuously improving
our products, pioneering new therapies, and
changing clinical practice.
Fisher & Paykel Healthcare | ANNUAL REPORT 202130Section 03 | THE COMPANY

45
Countries with
F&P people
2,191
People in North America,
including Mexico
350
People in Europe
3,932
People in New Zealand
424
People in the
rest of the world
Canada
Direct sales offices
Distribution centres
Manufacturing facilities
Mexico
China
Hong Kong
Taiwan
Japan
South Korea
Portugal
Brazil
Spain
Wales
France
USA
India
AustraliaNew Zealand
Scotland
England
Sweden
Poland
Northern Ireland
Netherlands
Germany
Italy
Belgium
Finland
Austria
Ireland
Switzerland
Turkey
Russia
Norway
Denmark
Note: people numbers are represented as full-time equivalents.
31Fisher & Paykel Healthcare | ANNUAL REPORT 2021Section 03 | THE COMPANY

RESEARCH & DEVELOPMENT
Our R&D is based in New Zealand. The
team works extensively in hospitals, and
with patients and clinicians, in order to
develop better technology that enhances
patient care.
SUPPLY CHAIN
We have distribution centres located around
the world and a network of distributors.
We use air, sea, road and rail freight, with
a focus on sustainable and cost-effective
methods of transportation. We source
materials from all over the world and look
for socially responsible partners to support
our growth.
THERAPIES
The majority of our operating revenue
is from products and systems used in
hospitals in invasive ventilation, noninvasive
ventilation, nasal high flow therapy and
surgery. The remainder is from products
used in home environments to treat patients
suffering from obstructive sleep apnea and
those in need of respiratory support.
CUSTOMERS
We work with thousands of healthcare
professionals, including doctors, clinicians
and nurses, providing them the products
and tools to deliver the best possible
care. Our largest markets by revenue are
North America, Europe and Asia Pacific.
MANUFACTURING
We manufacture the majority of our
products in New Zealand and the balance
in Mexico. The co-location of engineering,
quality, manufacturing, marketing and
clinical teams facilitates collaboration and
an awareness of the medical device process
from concept and design right through to
how our products are used by patients.
PATIENTS
Each year millions of patients are treated
with our products in over 120 countries.
Seeking to understand our patients’
needs is what drives our R&D programme.
The needs of our customers and their patients drive
everything we do. We call this Care by Design.
How our business works
Fisher & Paykel Healthcare | ANNUAL REPORT 202132Section 03|THE COMPANY

OUR INPUTSOUR OUTPUTS
Ageing population | Technology advancement | Healthcare costs increasing | Other external factors
MARKET CONTEXT
Our
6,000+
people
50+ years
of trusted
relationships
Benefits to
our people
Global
supply
networks
Increased
shareholder
value
Excellence
in R&D
Doubling
our constant
currency
revenue every
5-6 years
Trusted
brand
Improved
care and
outcomes for
patients
Increased
efficiency
of care
SUSTAINABLE, PROFITABLE GROWTH
We aim to grow our business in a way that is sustainable over the long term.
How we deliver value
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OUR PURPOSE:
Improving care and
outcomes through inspired
and world-leading
healthcare solutions
.
33Fisher & Paykel Healthcare | ANNUAL REPORT 2021Section 03 | THE COMPANY

We have a unique culture of
Care by Design, which is a simple
way of expressing the care and
intentionality we put into everything
we do — our relationships, our
decisions and our daily interactions
with customers. We believe that if
we focus on delivering what is
best for the patient, we will
be successful.
Our unique culture,
values and beliefs
OUR VALUES
Life
We relentlessly focus on
improving patients’ lives and
strive to provide a high quality
of life for our employees.
Relationships
We care for our patients,
customers, suppliers, shareholders,
the environment and each other.
Internationalism
We are global in people, in thinking
and in behaviours.
Commitment
We value people who are
self-motivated and have a desire
to make a real contribution.
Originality
We encourage original thinking
which leads to the innovative
solutions required to create better
products, processes and practices.
OUR BELIEFS
We believe in doing what is 
best for the patient.
We believe the commitment to
doing the right thing is what our
customers will find compelling.
We believe that empathy,
effectiveness and efficiency
are essential to our success.
We believe our people
are our strength.
We believe lessons learned
are the cornerstones
of innovation.
We believe in the need to be
relentless in the pursuit of
healthcare innovation.
Fisher & Paykel Healthcare | ANNUAL REPORT 202134Section 03 | THE COMPANY

What matters most
In the 2021 financial year, we
conducted a materiality assessment
to identify what is most important to
our business and our stakeholders.
Investors and other stakeholders are
increasingly using nonfinancial information
on other material topics to make decisions.
Those include trends and risks that could
affect a company’s long-term value, such as
climate change, as well as the economic and
social impacts of doing business.
This year, we worked with an independent
consultant, thinkstep, to obtain feedback
from multiple stakeholders. The result is an
updated materiality assessment informed
by the principles of the GRI Sustainability
Reporting Standards. Within this framework,
‘materiality’ differs from financial and audit
interpretations and NZX/ASX definitions of
material information.
As we identified material issues, we also
considered our unique business risks, the
United Nations Sustainable Development
Goals, and feedback we receive through
regular interactions with customers,
clinicians, suppliers and investors.
UNITED NATIONS SUSTAINABLE DEVELOPMENT GOALS
Fisher & Paykel Healthcare supports the
United Nations Sustainable Development
Goals. We have identified three goals where
we believe we can make a positive difference
in order to achieve a better and more
sustainable future for all.
OUR STAKEHOLDERS
EMPLOYEES
CLINICIANS
CUSTOMERS
SUPPLIERS
INVESTORS
COMMUNITIES
35Fisher & Paykel Healthcare | ANNUAL REPORT 2021Section 03 | THE COMPANY

OUR PROCESS
01020304
INTERVIEWED a range of
internal and external
stakeholders to discuss
emerging trends, concerns
and themes.
ANALYSED ranking survey
results to create materiality
matrix reflecting new
stakeholder priorities.
ENGAGED executive
management team to
validate and prioritise new
trends and themes.
CONDUCTED online survey of a
broader group of internal
and external stakeholders to
rank topics.
HEALTHCARE
OUTCOMES
STRATEGY
AND GROWTH
PEOPLE
AND CULTURE
BUSINESS
OPERATIONS
• Patient safety
• Product quality
• Innovation
• Customer experience
• Intellectual property
• Market access
•
Health, safety
and wellbeing
•
Employee attraction,
development and
retention
•
Sustainable financial
performance
• Resilient and ethical
supply chain
RESULTS OF
MATERIALITY ASSESSMENT
Patient safety, product quality
and the health, safety and
wellbeing of our people are
the top three topics of interest
to our stakeholders, as shown
in our materiality matrix on
the following page. We have
grouped these and the
remaining top eight material
matters into four areas of focus.
Fisher & Paykel Healthcare | ANNUAL REPORT 202136Section 03|THE COMPANY

MATERIALITY MATRIX
5.05.56.06.57.07.58.08.59.09.510.0
0
5.0
5.5
6.0
6.5
7.0
7.5
8.0
8.5
9.0
9.5
10.0
W. Scaled FY21
Patient safety
Product quality
Health, Safety & Wellbeing
Innovation
Employee attraction,
development & retention
Sustainable financial performance
Nurturing our culture
Resilient & ethical supply chainIntellectual Property
Market access
Customer experience
Legal compliance
Labour practices
Corporate governance
Improving public health
Disruptive technologies
Cyber security & data protection
Anti-bribery & corruption
Ethical research
Diversity & inclusion
Carbon & energy
Local employment
Healthcare demographics
Business continuity planning
Resource eŒciency
Community
Healthcare waste management
STAKEHOLDER CONCERN
(AS RANKED BY ALL STAKEHOLDERS)
BUSINESS IMPACT

(AS RANKED BY INTERNAL STAKEHOLDERS)
37Fisher & Paykel Healthcare | ANNUAL REPORT 2021Section 03 | THE COMPANY

Our Board
Scott St John
Chair and non-executive director
TERM OF OFFICE:
Appointed October 2015, last re-elected
23 August 2018. Appointed Chair on
21 August 2020.
Scott was Chief Executive Officer of
First NZ Capital from 2002 to 2017. He
is a member of Chartered Accountants
Australia and New Zealand and a fellow
of the Institute of Finance Professionals
of New Zealand. Scott is Chancellor
of the University of Auckland and a
director of Mercury Limited, the NEXT
Foundation and Fonterra Cooperative
Group Limited.
Bachelor of Commerce, Diploma in
Business
COMMITTEE RESPONSIBILITIES:
Member Audit & Risk Committee.
Member People & Remuneration
Committee.
Member Quality, Safety & Regulatory
Committee.
Lewis Gradon
Managing Director and
Chief Executive Officer
TERM OF OFFICE:
Appointed 1 April 2016, re-elected
28 August 2019.
Lewis became Managing Director & Chief
Executive Officer in April 2016. Prior to
that, he spent 15 years as Senior Vice
President – Products & Technology, and
six years as General Manager – Research
and Development. During his 37-year
tenure with Fisher & Paykel Healthcare
he has held various engineering positions
overseeing the development of our range
of products as well the development of
our manufacturing, quality, intellectual
property, supply chain and clinical
research functions.
Bachelor of Science – Physics
Michael Daniell
Non-executive director
TERM OF OFFICE:
Appointed November 2001,
last re-elected 23 August 2018.
Mike was Managing Director and Chief
Executive Officer of Fisher & Paykel
Healthcare from November 2001 to
March 2016. He was General Manager
of Fisher & Paykel’s medical division
from 1990 to 2001 and previously
held various technical management
and product design roles within the
company. Mike is a member of the
Council of the University of Auckland,
a director of Cochlear Limited, Tait
Limited and the Medical Research
Commercialisation Fund, and Chair
of the Medical Technologies Centre
of Research Excellence.
Bachelor of Engineering (Hons)
COMMITTEE RESPONSIBILITIES:
Member Audit & Risk Committee.
Pip Greenwood
Non-executive director
TERM OF OFFICE:
Appointed June 2017, last re-elected
21 August 2020.
Pip was a partner at Russell McVeagh
between 2001 and 2019 and previously
served as the firm’s Board Chair. She
has advised on many market-leading
transactions. She is a director of Spark
New Zealand Limited, Westpac New
Zealand Limited and a2 Milk Company
Limited, a current trustee of the
Auckland Writers Festival and served as
a member of the New Zealand Takeovers
Panel from 2007 to 2011.
Bachelor of Laws
COMMITTEE RESPONSIBILITIES:
Chair People & Remuneration Committee.
Fisher & Paykel Healthcare | ANNUAL REPORT 202138Section 03 | THE COMPANY

Geraldine McBride
Non-executive director
TERM OF OFFICE:
Appointed August 2013, last re-elected
21 August 2020.
Geraldine has been involved in
the technology industry for more
than 30 years and has a wealth of
global experience. She has held senior
executive roles at SAP AG and Dell
Inc, and is a former President of SAP
North America. She is a director
of Sky Network Television Ltd, and
the founder and CEO of MyWave.
Bachelor of Science – Zoology
Neville Mitchell
Non-executive director
TERM OF OFFICE:
Appointed November 2018, elected 28
August 2019.
Neville was Chief Financial Officer
and Company Secretary of Cochlear
Limited between 1995 and 2017. He
is non-executive director of Sonic
Healthcare, Osprey Medical and Q’Biotics
Group, a member of the Australian Board
of Taxation, and a director of the South
East Sydney Local Health District Board.
Bachelor of Commerce
COMMITTEE RESPONSIBILITIES:
Chair Audit & Risk Committee.
Member Quality, Safety & Regulatory
Committee.
Donal O’Dwyer
Non-executive director
TERM OF OFFICE:
Appointed December 2012, last
re-elected 28 August 2019.
From 1996 to 2003, Donal was with
Cordis Cardiology, initially as its president
(Europe) and from 2000 to 2003 as its
worldwide president. Prior to joining
Cordis, he worked for 12 years with
Baxter Healthcare, rising from plant
manager in Ireland to president of the
Cardiovascular Group, Europe, now
Edwards Lifesciences. Donal is a director
of Cordis Asset Management, Mesoblast
Limited and nib Holdings Limited.
Previously he served on the board of
Cochlear Limited.
Bachelor of Engineering, Master of
Business Administration
COMMITTEE RESPONSIBILITIES:
Chair Quality, Safety & Regulatory
Committee.
Member People & Remuneration
Committee.
39Fisher & Paykel Healthcare | ANNUAL REPORT 2021Section 03 | THE COMPANY

Our Executive Management Team
Lewis Gradon
Managing Director &
Chief Executive Officer
Lewis was appointed Managing
Director & Chief Executive
Officer in April 2016. He
previously served as Senior
Vice President – Products
& Technology and General
Manager – Research and
Development. He has held
various engineering positions
within Fisher & Paykel’s
healthcare business, overseeing
the development of our range
of products. He received his
Bachelor of Science degree
in physics from the University of
Auckland.
Winston Fong
Vice President
– Surgical Technologies
Winston was appointed
Vice President – Surgical
Technologies in February 2017.
Winston previously served as
Vice President - Information &
Communication Technology
from 2010 and has held various
IT management, product
and software development,
and systems engineering
roles in the business since
1999. Winston received his
Bachelor of Engineering degree
with honours in Electronics
& Computer Engineering
from Manukau Institute of
Technology and Master of
Business Administration from
the University of Auckland.
Paul Shearer
Senior Vice President
– Sales & Marketing
Paul was appointed Senior Vice
President – Sales & Marketing
in 2001. Paul previously served
as the General Manager – Sales
and Marketing of Fisher &
Paykel’s healthcare business
from 1996. From 1990 to 1998,
Paul held several roles in the
business and established our
sales operations in the UK
and US. He has held various
positions with Computercorp
Ltd, a computer systems
integrator, and ICL Ltd., a
multinational computer systems
company. Paul received his
Bachelor of Commerce degree
in marketing from the University
of Canterbury.
Lyndal York
Chief Financial Officer
Lyndal was appointed Chief
Financial Officer in March
2019. Before joining Fisher &
Paykel Healthcare, Lyndal was
CFO at Asaleo Care and prior
to this held Head of Group
Finance and Group Financial
Controller roles at Cochlear
in Australia over an 11-year
period. She has also spent time
in the US, as VP Corporate
Accounting and Reporting at
Edwards Lifesciences. Lyndal
is a member of Chartered
Accountants Australia and
New Zealand, a graduate
of the Australian Institute
of Company Directors, and
received her Bachelor of
Economics from Macquarie
University and Masters in
Business Administration from
Pepperdine University.
Andrew Somervell
Vice President
– Products & Technology
Andrew was appointed
Vice President – Products
& Technology in April 2016.
Since joining Fisher & Paykel
Healthcare in 2006, he has held
various product development
and operations management
roles, and most recently was
General Manager - Product
Groups. He has overseen the
development of the OSA
product range and managed
research and development,
marketing, clinical,
manufacturing, and aspects of
the supply chain. Before joining
Fisher & Paykel Healthcare,
Andrew was a Research Fellow
at the University of Auckland
and holds a doctorate in physics
from the same university.
Fisher & Paykel Healthcare | ANNUAL REPORT 202140Section 03 | THE COMPANY

Marcus Driller
Vice President – Corporate
Marcus was appointed Vice
President Corporate in February
2019. Marcus joined Fisher &
Paykel Healthcare in 2009 as
an in-house lawyer and since
that time has held several roles
in legal, investor relations and
communications and most
recently as General Manager
– Corporate. Prior to joining
the company, he worked for
New Zealand law firm, Russell
McVeagh where he specialised
in corporate and commercial
law. Marcus received his
Bachelor of Commerce and
Bachelor of Laws from the
University of Auckland.
Jonti Rhodes
General Manager – Supply Chain,
Facilities & Sustainability
Jonti was appointed General
Manager – Supply Chain in
2015. Jonti joined Fisher &
Paykel Healthcare in 2007 as
a product design engineer,
and since that time has held
several roles, both in New
Zealand and the United
States, in quality, regulatory,
and most recently as Group
Logistics Manager. Jonti has
overseen the implementation
of the New Zealand and US
distribution hubs and played
a key role in the development
of our product surveillance
system. He holds a Bachelor
of Engineering (Mechanical)
from Auckland University of
Technology and a Master of
Business Administration from
the University of Auckland.
Nicola Talbot
Vice President
– Human Resources
Nicola was appointed VP
Human Resources in October
2020. She has more than
20 years of experience with
Fisher & Paykel Healthcare. She
worked with our International
Sales team for 14 years and was
appointed to the role of General
Manager – Human Resources
(International Sales) in 2017.
Nicola has been involved
in the set-up, recruitment,
development and support of
our people in more than 40
countries. She holds a Bachelor
of Management Studies with
Honours in Human Resources
and Marketing from the
University of Waikato.
Brian Schultz
Vice President
– Quality & Regulatory Affairs
Brian was appointed Vice
President Quality & Regulatory
Affairs in 2015. Brian previously
served as Quality Manager for
New Zealand Manufacturing
since joining the company in
2011. Prior to joining Fisher &
Paykel Healthcare, Brian held
quality management positions
within the medical device and
pharmaceutical industries in
Australia, Switzerland, United
Kingdom and the United States.
He received his Bachelor of
Science degree from Grand
Valley State University,
Michigan.
Nicholas Fourie
Vice President – Information &
Communication Technology
Nicholas was appointed Vice
President – Information &
Communication Technology
in February 2017. Nicholas
has been with Fisher & Paykel
Healthcare since 2007, and
in that time has held various
systems engineering and IT
management roles, including
his most recent position as
ICT Manager - Development
& Engineering. Prior to joining
Fisher & Paykel Healthcare,
he worked for the South
African division of BHP Billiton.
Nicholas holds a Diploma in
Computer Engineering from
Damelin School of Information
Technology in South Africa.
41Fisher & Paykel Healthcare | ANNUAL REPORT 2021Section 03 | THE COMPANY

Fisher & Paykel Healthcare | ANNUAL REPORT 202142Section 04|OPERATING SUSTAINABLY

OPERATING SUSTAINABLY By looking
after our people, local communities
and the environment, we can be
more innovative and successful in
the long term.
04
43Fisher & Paykel Healthcare | ANNUAL REPORT 2021Section 04 | OPERATING SUSTAINABLY

People
Our people are energised by our
core purpose, supported by our
culture, guided by our values and
strengthened by our trust.
Our people are our strength, as they have
demonstrated on countless occasions during
the 2021 financial year. Our global teams have
united in the fight against COVID-19, and their
efforts have been truly exceptional.
Our approach is to employ good people
who contribute the most they can over the
long term. In exchange, we support them with
a positive, inclusive culture based on teamwork
and great relationships, and a safe, healthy
and enjoyable workplace.
The challenges of COVID-19 gave us
opportunities to introduce new ways to recruit,
train and develop our people at pace, to
connect and collaborate in new ways, and to
continue to create a place of belonging. We
offered job security and a flexible environment
so our people could contribute their best
within their own unique circumstances.
Fisher & Paykel Healthcare | ANNUAL REPORT 202144Section 04 | OPERATING SUSTAINABLY

SUPPORTING OUR PEOPLE
DURING COVID-19
Keeping our people safe, both physically
and mentally, was top of mind in every location.
Some of our people worked from home, and
some continued to support customers in
hospitals as they were able. Others worked
in the office, warehouse or production line.
Our human resources teams and leadership
teams worked together to support each
location.
Our teams shared advice and solutions
globally that could be adapted locally for their
conditions. At our global locations, we adopted
safety measures such as split shifts, wearing
personal protective equipment and social
distancing and developed guidance for our
people to work safely in hospitals.
At our two largest facilities, in New Zealand
and Mexico, our on-site clinics provided health
care and advice and medically cleared people
to return to work. We also implemented an
in-house COVID-19 24/7 support call centre
and Bluetooth contact tracing ‘CareCard’ in
New Zealand.
We took a proactive approach to helping
our people stay positive and motivated.
Through an internal communications and
social media campaign called Unite in the Fight,
we reminded our people of the vital role their
work was playing in the treatment of COVID-19
patients and the other patients who relied on
our devices in the hospital and home. The
campaign was extended to engage our people
in Mexico under the banner Unidos en la Lucha.
Sharing stories from hospitals, patients and the
media, including images of recovering patients,
gave those who were working tirelessly a boost
when they needed it. We have continued this
campaign by collecting stories of the immense
strength, bravery, creativity and commitment
by our people in an employee yearbook called
Pulse to commemorate this extraordinary year.
Communicating clearly and regularly helped
provide reassurance to our people and their
families, and we implemented a wide range of
support measures to provide job security
despite global economic uncertainty. This
included details on leave, pay and travel,
support for vulnerable workers, on-site clinics,
counselling, wellbeing support, groceries and
meals, essential worker letters and much more.
NEW ZEALAND
Bluetooth contact tracing
‘CareCard’ and an in-house
COVID-19 24/7 support
call centre
ON SITE CLINICS
On-site clinics in
New Zealand and Mexico
providing advice
45Fisher & Paykel Healthcare | ANNUAL REPORT 2021Section 04 | OPERATING SUSTAINABLY

People – Continued
ATTRACTING AND RETAINING
NEW PEOPLE
Recruiting during the 2021 financial year was
radically different to the previous year. The
accelerated growth in demand for our products
required rapid growth in the numbers of
people, particularly on key manufacturing lines,
which moved to 24 hours a day, seven days a
week operations. These challenges, combined
with border closures and routine turnover,
meant we had to use new ways to find people.
To recruit waged people in New Zealand, we
created assessment centres to evaluate a larger
number of candidates each week. Each centre
ran interviews, fine motor skills assessments
and mock assembly line tests while maintaining
social distancing throughout the process. Once
recruited, new employees were inducted and
onboarded in larger numbers. We also used
recruitment partners to assist with temporary
resources during peak production periods.
To recruit salaried people in New Zealand,
we moved to a virtual end-to-end recruitment
process. We utilised digital resourcing
channels and added a human touch where
possible. In the process, we brought more
clarity to our talent data, reshaped our
employer brand and fine-tuned our virtual
hiring process. Candidate applications
increased due to pandemic-related
redundancies in the New Zealand market.
In Tijuana, Mexico, our focus was on
maintaining a flow of candidates to sustain
production, particularly to cover tasks when
employees were unable to attend work due to
COVID-19. Key sources of attraction were
recruitment websites, internal references and
promotions, and virtual job fairs. Again, the
team tried to ensure a human touch where
possible despite moving interviews online.
In our global sales offices, our recruiting efforts
focussed on adding people to provide our
customers with education and technical
support and to process and deliver higher
volumes of products.
DIGITAL RESOURCING
Increased use of recruitment
agencies and a virtual
end-to-end recruitment
process. Improved talent data,
employer brand and
virtual hiring process.
Fisher & Paykel Healthcare | ANNUAL REPORT 202146Section 04 | OPERATING SUSTAINABLY

DIVERSITY AND INCLUSION

We believe diverse teams deliver better
results. Diversity of thought is the
foundation of our culture, and it is
essential for innovation. It is important to
ensure that our culture is inclusive, so that
diversity, in all spectrums of human
difference, can thrive. This leads to better
outcomes for our people, patients and
communities. We use both quantitative
and qualitative measures to review our
diversity and inclusion performance and
focus on continuous improvement. If we
identify issues, we drill down to root cause
and take corrective and preventative
actions to address the root cause.
The Board is responsible for establishing
measurable objectives for achieving a
diverse and inclusive workforce. Our
complete Diversity & Inclusion policy is
available on our website.
FY21 objectiveProgress
Understand and improve female
representation in the R&D function.
Completed Phase 1 of project to research how gender
impacts the experiences of our engineers and how this
might contribute to our low female representation in R&D.
Pilot unconscious bias workshops in New Zealand.Completed.
Extend gender diagnostic activities to global offices.Not completed.
Complete ethnicity diagnostic.Not completed.
FY22 diversity and inclusion objectives
Our diversity and inclusion priorities for the 2022 financial year are:
• Complete the gender representation
diagnostic in our sales regions and Mexico
manufacturing plant.
• Identify initiatives to improve gender
representation in our global locations where
required.
• Identify and commence implementation of
two initiatives to improve female
representation in the R&D function.
• Increase our focus on diversity beyond
gender by completing an investigation into
the impact of culture on New Zealand waged
employees’ career progression.
Progress on FY21 diversity and inclusion objectives
We made good progress across some of our FY21 diversity and inclusion goals as shown in
the table below. Two of our objectives were deprioritised due to the global impact of COVID-19.
These activities will resume in the 2022 financial year.
47Fisher & Paykel Healthcare | ANNUAL REPORT 2021Section 04 | OPERATING SUSTAINABLY

People – Continued
IDEA Council initiatives
Our IDEA Council (Inclusion, Diversity, Equality and Awareness Council) is made up of five
employees to champion diversity and inclusion, act as spokespeople to the executive
leadership team and Board and ensure sustainable outcomes from diversity and inclusion
initiatives. Below are the current areas of focus for the IDEA Council.
R&Dversity Project Cultural Values ProjectTrusted Advisor Workshops
Project to research how
gender impacts the
experiences of our engineers
and how this might
contribute to our low female
representation in R&D.
Project to investigate the
impact of culture/ethnicity
on waged employee’s
career goals and whether
this contributes to under-
representation of some
ethnicities in technically
skilled or higher paid roles.
Workshops in which IDEA
Council members can
provide their feedback on
a range of diversity and
inclusion initiatives, including
indigenous leadership
development, unconscious
bias workshops, intern and
graduate diversity, diversity
in our marketing materials,
and guidance on inclusive
language.
Spectra
During the 2020 financial year, we welcomed the
formation of a new employee-led group called
Spectra. Spectra was established to enable the
Rainbow (queer and gender diverse) community
to be their full, authentic self at work.
Spectra now has a core committee made up of
10 members, supported by a wider group of 34
Rainbow employees and allies. Spectra’s three
strategic focus areas are increasing visibility of
the Rainbow community, enhancing a
welcoming and inclusive work environment and
strengthening connections.
Spectra used Pride Week in February 2021 to
provide education and visibility of the group.
Their key achievements this year included
rolling out an LGBTQIA+ learning session,
advising on plans for gender-inclusive facilities
and proving Rainbow health and wellbeing
resources.
Spectra used Pride Week in February 2021 as a way to
provide education and visibility of the group.
Fisher & Paykel Healthcareā|āANNUAL REPORT 202148Section 04 | OPERATING SUSTAINABLY

LEARNING AND DEVELOPMENT
The pandemic gave our people
opportunities to step up, learn new skills,
meet new people and develop in areas
that were completely different to their
usual roles. This ranged from salespeople
switching to warehouse duties; engineers
designing new ‘distanced’ desk layouts,
writing return-to-work procedures and
helping source raw materials; and lawyers
writing media statements. Some of our
people took up secondments, which then
evolved into new permanent positions in
different departments, while others grew
their understanding of and connections
within the business.
Pitching in with new roles
and responsibilities
“ A fter my one-day training, I
was running a COVID-19 ward
training session for six hours!
A day I will never forget.”
“If we can’t keep our people
safe on site and continue to
make products, then it’s bad
news for patients worldwide.
I have learned so much
and met people I wouldn’t
normally interact with. It was
a privilege to help.”
“ T he urgency and feedback
is immediate. If we don’t get
the parts, the production line
stops. While I miss the hands-
on nature of engineering,
there is much more exposure
and interaction with business
groups I had previously
little to do with.”
ANNABELLE CURTIS
Territory Manager, UK Surgical
Annabelle completed an
intensive course in AIRVO
training to help educate
UK clinicians.
JAKE HOCKING
Senior Product Development Engineer,
OSA
Jake led an army of company
volunteers and took on 36
completely new tasks,
including pitching isolation
tents and distributing food
boxes to our people so they
could avoid supermarkets.
STEPHANIE HAZARD
Project Manager, Supply Chain
Stephanie moved out of her
role as an engineer to
become a supply chain
project manager, initially
placing purchase orders for
parts and managing parts
shortages.
49Fisher & Paykel Healthcare | ANNUAL REPORT 2021Section 04 | OPERATING SUSTAINABLY

People – Continued
Manaaki Indigenous Leadership Programme
In partnership with New Zealand’s
Indigenous Growth Limited and Te Puni Kokiri
(Ministry of Māori Development), we launched
a pilot culturally-focussed programme to offer
indigenous employees a unique learning
opportunity to build their leadership skills
to benefit themselves, their whānau (family),
workplace and communities. This is one of
the ways that Fisher & Paykel Healthcare
supports Māori employees and local Māori
communities, as part of our acknowledgement
of Te Tiriti O Waitangi (the Treaty of Waitangi).
Called ‘Manaaki’, the programme provides a
structure for participants to bring their cultural
self and values to work, for their team and
organisation to benefit. Manaaki literally
translates to ‘care’, originating from ‘mana’,
meaning ‘strength’, and ‘aki’, meaning ‘to urge’.
Sixteen employees with New Zealand
Māori heritage from waged and salaried areas
took part in the successful six-month pilot
programme, motivated by the range of
opportunities to connect and learn different
pathways to success. This group is now
working on projects to resolve challenges
identified within the business. We will look
to further develop this style of learning in the
year ahead.
Accelerate
Accelerate, our digital learning programme for
new salespeople, has been used by our US
team since August 2019. It has been a vital tool
for onboarding new people virtually, and 133
people have now completed the programme.
Its 120 e-learning modules focus on clinical
education, sales strategy and fundamentals.
Accelerate is now in use in New Zealand,
Australia, Canada, the UK and India, and it is
being translated into nine languages for Fisher
& Paykel Healthcare distributors.
Intern and graduate programmes
We welcomed 101 interns and graduates across
engineering, supply chain, marketing, ICT,
intellectual property and finance this year. We
focused on enhancing their experience right
from induction, including a range of learning
and experiential opportunities and ways to
meet new people and build their community.
“ Manaaki is about connecting
us to our culture and
providing us with education
to understand some of the
barriers we’ve had as Māori
in terms of progressing to
leadership roles but also
providing us with the tools
and confidence to help us
overcome those barriers.”
KIRI HENARE
General Manager – Human Resources,
New Zealand Operations
“ Some parts of Manaaki are
challenging because you’re
going deep within yourself
and you may not have done
that. Overall it’s a great
experience.”
SAM BRACEY
Setter, OSA Moulding
“ A fter two years of trying to
connect with other Māori
here, I’ve finally found them!
It’s been an emotional
journey, but I can’t wait to
share what we’ve learned to
help others.”
VERONICA MATHESON
Senior Communications Specialist
Manaaki
Our graduates completed a Karts for Hearts team-building activity to help
them discover their strengths. They “earned” equipment and resources to build
a billy cart, and once the cart was completed, they created a sales pitch to
show why their cart was best. The carts were all presented to children and
parents of a local heart charity.
Fisher & Paykel Healthcareā|āANNUAL REPORT 202150Section 04 | OPERATING SUSTAINABLY

Mexico education and development
Our team in our Mexican manufacturing
facilities actively supports the education
and development of employees by
providing student scholarships and a grand
graduation event every year. Due to
COVID-19, this year’s graduation ceremony
took a completely different ‘route’. Instead
of in an auditorium, it was celebrated
caravan-style outside the building, and our
30 graduates drove up in their cars to
receive their diplomas.
Education is very important
to continue achieving my
goals. Although the road isn’t
easy, it’s worth the effort to
get where I want to be.
JOSE CHAVEZ
Graduate
51Fisher & Paykel Healthcare | ANNUAL REPORT 2021Section 04 | OPERATING SUSTAINABLY

People by the numbers
By region
20202021
RegionPermanentTemporaryPermanentTemporary
New Zealand2,4432932,963971
Mexico1,294281,77497
Rest of World1,014171,09615
Total4,7513385,8331,083
By gender
20202021
GenderPermanentTemporaryPermanentTemporary
Women2,3862392,967680
Men2,365942,863396
Non-binary/third gender––12
Not specified/
Prefer not to say
–525
Total4,7513385,8331,083
Full-time and part-time*
20202021
GenderFull-timePart-timeFull-timePart-time
Women2,356302,93433
Men2,354112,85013
Non-binary/third gender––1–
Not specified/
Prefer not to say
––2–
Total
2
4,710415,78845
TOTAL PEOPLE
The tables below show our total numbers of people by headcount as at
31 March 2021. We have recently added new gender categories to the
data we collect upon hiring. Information gathered in previous years did
not include these categories.
* Does not included New Zealand temporary employees (casual, fixed term, temporary, temporary part time and
contract temporary) due to the changing nature of their hours.
GENDER PAY RATIO
The table below shows our gender pay ratio, calculated within salary
bands and functions using the average pay ratio between females and
males as at 31 March 2021. The gender pay ratio, both in New Zealand
and globally, remained relatively stable this year with no statistical
difference in employees’ pay for like-for-like roles based on gender.
20202021
New Zealand (salaried and waged)99.4%100%
Outside of New Zealand (salaried only)98.0%96.5%
Total98.9%98.8%
Fisher & Paykel Healthcare | ANNUAL REPORT 202152Section 04 | OPERATING SUSTAINABLY

LEADERSHIP BY GENDER
The table below shows the ratio of women to men among our Board members, senior executives,
management and all employees as at 31 March 2021. This chart does not include our new gender
categories, as this data has been collected only for new employees. It has not been collected in
retrospect.
LEADERSHIP BY AGE
The table below shows the age ranges of our people among our Board members, senior executives
and all employees as at 31 March 2021.
20202021
BoardSenior executives
1
All employees
2
BoardSenior executives
1
All employees
2
Under 30 years old––1,269001,711
30 – 50 years old–82,694083,223
Over 50 years old8278872899
% Under 30 years old––27%––30%
% 30 – 50 years old–80%57%–80%55%
% Over 50 years old100%20%16%100%20%15%
1
The term “senior executive” refers to the Chief Executive Officer and executives reporting directly to the Chief Executive Officer.
2
T emporary staff are not included in these numbers.
20202021
WomenMenWomen %Men %WomenMenWomen %Men %
Board2625%75%2529%71%
Senior executives
1
2820%80%2820%80%
Senior management
2
143628%72%164029%71%
All employees
3
2,3862,36550%50%2,9672,86351%49%
1
The term “senior executive” refers to the Chief Executive Officer and executives reporting directly to the Chief Executive Officer.
2
The term "senior management" refers to the Chief Executive Officer, Senior executives and employees reporting directly to Senior executives.
3
T emporary staff are not included in these numbers.
53Fisher & Paykel Healthcare | ANNUAL REPORT 2021Section 04 | OPERATING SUSTAINABLY

HIRE RATES
The tables below show our hire rates for the financial year ended
31 March 2021. Hire rate is the number of permanent employees hired
divided by headcount in each region or category.
By region
20202021
RegionNew employeesHire rateNew employeesHire rate
New Zealand40416%64421%
Mexico40131%64736%
Rest of World19219%19418%
Total99721%1,48525%
By gender
20202021
GenderNew employeesHire rateNew employeesHire rate
Women62526%81227%
Men37216%67023%
Non-binary/third gender––1–
Not specified/
Prefer not to say
––2–
Total99721%1,48525%
By age group
20202021
Age groupNew employeesHire rateNew employeesHire rate
Under 30 years old52141%78045%
30 – 50 years old43016%64820%
Over 50 years old466%576%
Total99721%1,48525%
People – Continued
Fisher & Paykel Healthcare | ANNUAL REPORT 202154Section 04|OPERATING SUSTAINABLY

EMPLOYEE RETENTION
The tables below show employee turnover rates for the financial year
ended 31 March 2021. This data does not include the new gender
categories, because information gathered from employees in previous
years did not include these categories.
By region
20202021
Region
Number of
leavers
Turnover
rate
Number of
leavers
Turnover
rate
New Zealand1938%1274%
Mexico27321%39822%
Rest of World13814%1049%
Total60413%62911%
By age group
20202021
Age group
Number of
leavers
Turnover
rate
Number of
leavers
Turnover
rate
Under 30 years old26220%29317%
30 – 50 years old28811%2849%
Over 50 years old547%526%
Total60413%62911%
By gender
20202021
Gender
Number of
leavers
Turnover
rate
Number of
leavers
Turnover
rate
Female33814%33611%
Male26611%29310%
Total60413%62911%
COLLECTIVE BARGAINING
AGREEMENTS
Of all permanent employees globally,
22% were covered by collective
bargaining agreements in the 2021
financial year.
Collective bargaining agreement
No collective bargaining agreement
22%
78%
55Fisher & Paykel Healthcare | ANNUAL REPORT 2021Section 04 | OPERATING SUSTAINABLY

Community
Fisher & Paykel Healthcareā|āANNUAL REPORT 202156Section 04 | OPERATING SUSTAINABLY
We seek to build brighter and
healthier communities through care
and collaboration. We partner with
like-minded organisations to identify
and facilitate opportunities to create
shared value.
Through a combination of financial and in-kind
support, we facilitate and sponsor various
community programmes each year. We focus
primarily on funding clinical research,
improving access to healthcare, promoting
science education and supporting local
environmental initiatives. This year, COVID-19
restricted some of our business-as-usual
activities, and our efforts shifted to responding
to immediate community needs in light of the
pandemic.
URGENT HELP DURING THE
COVID-19 PANDEMIC
During the COVID-19 pandemic, we acted
quickly to help our local communities.
Because the majority of our employees
work at our facilities in Auckland, New Zealand
and Tijuana, Mexico, those locations were the
focus of our response.
At the beginning of the pandemic, there
were global concerns about a possible
shortage of ventilators for treating COVID-19
patients. Fisher & Paykel Healthcare does
not produce ventilators; however, through
our supplier relationships we were able to
purchase 79 ventilators and donate them
to the New Zealand Ministry of Health.
This donation was valued at $5 million.
There was also concern about the availability
of personal protective equipment (PPE),
including masks, for healthcare workers. We
mobilised a team of engineers to design an
alternative mask that could be manufactured at
our site in Auckland if needed. We produced
and donated a small supply to the Ministry of
Health. Fortunately, this risk did not materialise,
and New Zealand has been able to meet the
demand for personal protective equipment.
Mexico was more severely impacted by the
coronavirus than New Zealand. As COVID-19
testing was limited in the public health system
in Mexico, we provided our Tijuana employees
with access to private healthcare for testing
and treatment. Some of our people have tested
positive for COVID-19 and have been
hospitalised. To meet their needs and support
the local healthcare community at large, we
donated 40 F&P Airvo 2 systems, along with
20 850 humidifiers and associated
consumables to hospitals in Tijuana.

57Fisher & Paykel Healthcare|ANNUAL REPORT 2021Section 04 | OPERATING SUSTAINABLY
ABSORBING
INCREASED AIRFREIGHT
AND SUPPLY CHAIN COSTS
Because of challenges with global
supply chains, we relied heavily on
airfreight to bring in raw materials
quickly and deliver product to
customers. The cost of airfreight and
expediting the supply of raw
materials was significant; however,
we have opted to absorb these cost
increases instead of passing them on
to our customers in the form of
increased pricing.
FISHER & PAYKEL HEALTHCARE
FOUNDATION
One of the hallmarks of a successful
business is looking after the wider
community.
At the end of the 2021 financial year, Fisher &
Paykel Healthcare committed $20 million to
establish the new Fisher & Paykel Healthcare
Foundation. This charitable organisation has
been established to enable a more sustainable
model for funding of community and charitable
activities. The Foundation's purposes include
supporting and funding health research,
programmes that improve access to healthcare,
environmental protection initiatives and
promoting awareness of opportunities in STEM.
A board, consisting of independent trustees and
representatives from Fisher & Paykel Healthcare,
will provide oversight and make funding
decisions. We look forward to reporting on the
foundation’s activities next year.
$20m
TO ESTABLISH THE NEW
FISHER & PAYKEL HEALTHCARE FOUNDATION

Community – Continued
SOUTHSCI
This year our New Zealand team continued to
support SouthSci, an organisation that helps
enable education opportunities for kids in
STEM (science, technology, engineering and
maths). An initiative of COMET Auckland,
SouthSci aims to spark students’ interest in
science-related fields and to build relationships
between local businesses, researchers, schools
and youth.
During the months when Auckland was not
subject to COVID-19 lockdowns, our volunteers
participated in five SouthSci initiatives:
• The Gardens School – Minimising Carbon
Footprint
• East Tamaki School – Guava Moth Traps
• Pasifika Early Learning – Le Malelega a le
To'elau (Waste Minimisation),
• Pasifika Early Learning – Puna o le Atamai
(Energy Production, Use and Sustainability)
• Southern Cross Campus – Weather Station
Rollercoaster.
We also trialled mentor ‘coaches’ where a
mentor from a previous year provides guidance
for new mentors. Schools experienced
challenges with lockdowns and variable
student attendance due to COVID-19, and
many project leaders expressed appreciation
for our mentors’ time and interest.
I know how important STEM is for women
and people of colour in New Zealand. They
are not well represented in STEM careers
and it starts when they are very little.
NIQI OGLETREE
Mentor and Process Development Engineer, Infant Care
Photo: Courtesy of SouthSci 2020
Fisher & Paykel Healthcareā|āANNUAL REPORT 202158Section 04 | OPERATING SUSTAINABLY

more than 3,600 de-identified patient cases.
The registry and app will potentially provide
doctors with the evidence and information
they need to save lives in the future,
particularly in middle-income countries with
limited resources and support.
Fisher & Paykel Healthcare supported the
project by providing $250,000 in funding to
the COVID-19 Critical Care Consortium. These
funds will cover the cost of hiring people to
input de-identified patient data into the
registry in Brazil, South Africa and Indonesia.
CLINICAL RESEARCH FOR COUNTIES
MANUKAU HEALTH AND MIDDLEMORE
HOSPITAL
We continued our ten-year, $1.5 million
partnership agreement with Counties Manukau
Health this year, donating $150,000 to fund
clinical research. Middlemore Hospital will use
the funds for research projects that benefit
local communities in South Auckland. The
partnership helps Counties Manukau Health
attract and retain top clinicians and enables
Middlemore Hospital to extend its research
agenda. This is one of the ways that Fisher &
Paykel Healthcare supports our local South
Auckland community.
GLOBAL INITIATIVES
While a lot of our community giving is
focussed on New Zealand and Mexico, teams at
our global offices also select and sponsor
community initiatives at their discretion which
often link with employee engagement and our
purpose. For example, in North America, the
UK and Australia, our people participated in
charity fundraising activities to support
organisations that may have seen a decline in
donations. This included raising money for
cancer, sleep health and chronic obstructive
pulmonary disease charities.
SUSTAINABLE TAX STRATEGY
Collecting and paying tax is an important
contribution to the communities in which we
operate. In support of our overall business
strategy and objectives, we pursue a tax
strategy that is principled, transparent and
sustainable in the long term.
Our Group’s tax contribution includes paying
corporate income taxes, employment-related
taxes and other taxes that we pay or collect on
behalf of governments. We support the OECD
Business and Industry Advisory Committee
(BIAC) Statement of Tax Principles for
International Business and have endorsed
these principles in our published Group Tax
Strategy, which was reviewed and approved by
our Board in November 2020.
Our tax strategy sets out our approach to tax
governance and tax management and is aligned
to our conservative approach towards tax risk.
Its primary purpose is to ensure that we comply
with all of our tax obligations, undertake all
transactions with a business purpose considering
all of our stakeholders, and have an open and
transparent relationship with tax authorities.
Our business model is centred in New Zealand,
and the majority of our taxes are paid in New
Zealand. Most of our manufacturing activities
and tangible assets are located in Auckland.
All of our R&D is performed in New Zealand,
and the associated intellectual property is
owned in New Zealand as well.
COVID-19 CRITICAL CARE CONSORTIUM
Early on, as the COVID-19 pandemic spread
from country to country, emergency room and
ICU clinicians relied on disparate sources of
treatment information, from spreadsheets to
medical journals to online resources and
conversations with colleagues.
In a fast-paced ICU environment, they did not
have time to find specific information required
for each patient case. Because of the novelty of
COVID-19, treatment databases were often
incomplete, and many were set up for academics
working on a research schedule, not clinicians
responding to the urgent needs of the ICU floor.
Professor John Fraser of the University of
Queensland founded the COVID-19 Critical Care
Consortium, a global alliance of healthcare
professionals and researchers, to solve this
problem. Led by a team based at Brisbane’s
Prince Charles Hospital, the consortium – also
known as COVID Critical – sought to create an
online registry of de-identified patients.
Working in partnership with IBM, they designed
a web-based app to facilitate the registry.
Clinicians in more than 400 hospitals around
the world are now using the app to input data
into the COVID Critical registry. They can
compare their own patients in the ICU with
patients around the world to see which
treatments were successful with which patients.
The registry is the largest repository of
COVID-19 ICU patient information in the world
and it is now powering statistical analyses for
researchers at Queensland University of
Technology. Endorsed by the World Health
Organization and the US Centers for Disease
Control and Prevention, it already contains
59Fisher & Paykel Healthcare | ANNUAL REPORT 2021Section 04 | OPERATING SUSTAINABLY

Environment
Our environment refers to the
natural resources required to
design, produce, ship and use
products and therapies.
We recognise we have a responsibility to
care for the natural environment while we
pursue our business goals. Climate change
is a growing concern among our customers,
investors, and our own people. Furthermore,
environmental legislation is emerging in
countries where we manufacture and sell
our products, so it is important that we strive
for continuous improvement in this area.
Our approach is to operate our business
efficiently and responsibly while improving
care and outcomes for patients. We measure
key environmental metrics, including waste
management, recycling and water usage,
and publicly report on these metrics. As
part of our eco-efficiency strategy, we have
established collaborative teams to work
on a range of topics, including sustainable
packaging, bioplastics and 3D printing
recycling. We believe that by investing in
these initiatives, we can be more innovative
and more successful in the long term.
CDP SCORES
Each year we participate in CDP and our scores have shown continuous improvement. We began
disclosing on Water and Supplier Engagement in 2020 and on Forests in 2021. Below are our CDP
scores for the past three financial years.
TopicFY19FY20FY21
Climate BBA-
Supplier Engagement–B-A-
Water–CB
Forests––C
KEY ENVIRONMENTAL METRICS
Below is a summary of our performance metrics for the past three years. As we signalled in
last year’s annual report, this year Scope 3 data includes carbon emissions from our supply chain.
This helps us identify and prioritise areas for strategic carbon reduction.
TopicFY19FY20FY21
Scope 1 emissions (tonnes Co
2
e)2,0211,9141,465
Scope 2 emissions (tonnes Co
2
e)9,0948,81411,050
Scope 3 supplier emissions (tonnes Co
2
e)21,931650,000*718,991
Water usage (cubic litres) 106,37398,772134,900
Landfill waste diverted (cubic metres)–1,0321,630
Recycling efficiency (percentage waste recycled)69%66%62%
* Estimate/forecast only.
Fisher & Paykel Healthcare | ANNUAL REPORT 202160Section 04 | OPERATING SUSTAINABLY

CARBON COMMITMENTS
In New Zealand, we have been measuring our carbon footprint since 2012, and each year we
engage Toitū Envirocare to conduct third-party carbon footprint audits. In 2019, we set science-
based targets for Scope 1 and 2 carbon emissions, which are within our operational control, along
with a Scope 3 supplier engagement target. Those targets were approved by the Science Based
Targets Initiative as consistent with levels required to meet the goals of the Paris Agreement. Our
target is to reduce our Scope 1 and 2 emissions by 4.2 per cent annually using the 2019 financial
year as a baseline. During the 2021 financial year, we confirmed that 20 suppliers have also set
Science Based Targets or equivalent targets for carbon reduction.
Scope 1 and 2 carbon targets in tonnes of CO
2
2024 Target2029 Target2034 Target
Direct emissions – fuels, refrigerants, electricity and heat. 8,8466,4944,143
CARBON EMISSIONS
As we signalled last year, FY21 is the first year
that our carbon audit included Scope 3
emissions, which include freight and extend
across our supply chain. Our carbon audit for
the 2021 financial year shows a carbon
footprint of 731,500 tonnes of CO
2
e. This is in
line with previous forecasts that take into
account revenue growth.
Scope 1 and 2
During the COVID-19 pandemic, demand for
some of our key products increased by four
and five times during the 2021 financial year.
We moved to 24/7 shifts in New Zealand and
Mexico. The increase in operational activity
resulted in higher electricity use and other
direct emissions. In the long term, we remain
committed to decoupling carbon emissions
from production levels, as the impact of
COVID-19 diminishes. We will be piloting an
internal carbon price during FY22 so that the
carbon impact can be factored into our
business decisions.
Scope 3
The use of airfreight is one of our most
significant sources of carbon emissions, and
whenever possible, we ship our products by
sea freight. During the COVID-19 pandemic, we
had to rely more heavily on airfreight to import
raw materials and ship finished goods. As a
result, we reported a significant increase in
Scope 3 emissions. We expect airfreight to
return to normal levels over time as the impact
of COVID-19 diminishes.
We remain committed to educating our
suppliers about their responsibility to reduce
carbon emissions and to set their own Science
Based Targets. We have committed that 87 per
cent of our upstream suppliers (by spend) will
have set targets in line with the Science Based
Targets Initiative by 2024. During the 2021
financial year, we began this education process
and will continue those efforts during the next
financial year.
61Fisher & Paykel Healthcare | ANNUAL REPORT 2021Section 04 | OPERATING SUSTAINABLY

WATER USAGE
We have established an absolute water
reduction target of 2 per cent per year. During
the 2020 financial year, we exceeded that
target, reducing water usage by 7 per cent. In
the 2021 financial year, we significantly
increased production on key products for
hospitals treating patients with COVID-19. As a
result, water usage increased over the prior
financial year.
GREEN TEAM
Our volunteer-led Green Team now
includes more than 400 people promoting
environmental sustainability on our Auckland
campus and in the community. A highlight was
the annual Sustainability Week in November.
This included a presentation about internal
carbon pricing, a tour of our newly opened
Environmental Innovation Centre and a briefing
on international climate negotiations from the
New Zealand Ministry for Foreign Affairs &
Trade. The week finished with a sustainable
transport showcase featuring the latest electric
vehicles, bikes, e-bikes, e-scooters, carpooling
and public transport to encourage employees
to move to alternative forms of commuting as
a way of reducing greenhouse gas emissions
and local air pollution.
TRAVELWISE CHOICES AWARD
Fisher & Paykel Healthcare was selected the
winner in Auckland Transport’s Travelwise
Choices Awards in the category Excellence in
Travel Choices, which recognise the
commitment of businesses, individuals and
community organisations to encourage staff,
students, customers and volunteers to make
fewer car journeys. Judges said Fisher & Paykel
Healthcare “displays a strong commitment to
sustainability, including promoting sustainable
transport modes to staff as part of a wider
initiative to reduce local air pollution and
greenhouse gas emissions”.
MEMBERSHIPS
Fisher & Paykel Healthcare is a member of the
Climate Leaders Coalition (CLC) a group of
leading New Zealand companies who are
committed to taking voluntary action on
climate change. This includes measuring and
publicly reporting emissions, setting a public
emissions reduction target, and working with
suppliers to reduce their emissions.
Fisher & Paykel Healthcare is also a voluntary
member of the Sustainable Business Council
(SBC), which aims to mainstream sustainability
within the New Zealand business community.
SBC members make a commitment to address
greenhouse gas emissions, build sustainability
into their purchasing decisions, and introduce
annual reporting practices.
Environment – Continued
Fisher & Paykel Healthcare | ANNUAL REPORT 202162Section 04|OPERATING SUSTAINABLY

CASE STUDY
Fisher & Paykel Healthcare’s
Environmental Innovation Centre has
been busier than usual, thanks to
our first environmentally tasked
robot.
Our Robotic Disassembly System for the
Recycling of Humidification Chambers, or
‘Fern’ as it was named in a company
competition, is hard at work disassembling
unusable chambers into four pieces, so
they can bypass the landfill and get
recycled instead.
The robot project, which took about 14
months to complete and cost around
$400,000, was conceived at an Ecodesign
meeting and inspired a manual prototype
crafted (in his spare time) by systems
specialist Stewart Nankivell. Industrial
robotic experts at Facteon then brought
the concept to life.
Head of Sustainability and Environmental
Innovation Nic Bishop explained that Fisher
& Paykel Healthcare’s humidification
chambers are highly designed products,
and it takes cutting-edge technology to
dismantle them for recycling.
Fern therefore has three stations that
perform four disassembly jobs, separating
the chamber base and gasket, port cap,
dome and float valve from each other and
placing them in separate bins.
“Fern” and our recycling revolution
The robot is proving to be up to the job. Fern
can dismantle 90 chambers at a time, which
works out at about one every 19 seconds – or
1,000 in six hours. The environmental team
estimates the robot has already recycled
around 100,000 chambers. This equates to
330m
3
of landfill waste diverted.
“These chambers generate a large amount of
waste or are incinerated, which results in air
pollution that directly impacts on respiratory
health, so recycling them directly aligns with
what we do,” said Bishop.
The team hope that future miniaturised
versions of the robot will someday enable
environmentally minded hospitals worldwide to
recycle their own Fisher & Paykel Healthcare
chambers.
“Feedback from our international sales
teams and others talking directly with
customers is that they are concerned
about plastics and sustainability of use.
We know it’s what they want, and there
is a desire for recycling,” said Bishop.
In the meantime, he and the
Sustainability team are looking to deploy
another ‘Fern’ to Mexico and are
investigating ways to create a robot that
will help recycle our breathing circuits.
“It comes down to doing the right thing,”
said Bishop.
RECYCLING
Fern can dismantle 90 chambers
at a time, which works out at
about one every 19 seconds –
or 1,000 in six hours. The
environmental team estimates
the robot has already recycled
around 100,000 chambers.
This equates to 330m
3
of
landfill waste diverted.
63Fisher & Paykel Healthcare | ANNUAL REPORT 2021Section 04 | OPERATING SUSTAINABLY

INTERVIEW
ELLA MEISEL
ENVIRONMENTAL SPECIALIST
– ECODESIGN
Ella Meisel is a product
development engineer
and environmental
specialist who works in our
Sustainability team leading
Ecodesign initiatives. We
spoke with Ella about our
Ecodesign programme.

Environment – Continued
What is the purpose of the
Ecodesign programme?
Our company’s core purpose is improving
care and outcomes for patients. It’s important
to point out that the products and therapies
we make already help patients to recover
more quickly, saving on the high energy,
water and medical gas consumption often
needed to treat a patient in hospital. Our
Ecodesign programme aims to innovate for
improved outcomes for both patients and the
environment.
Recently, our customers have been
requesting information about the renewable
content, packaging materials and recyclability
of our products. Tenders and requests for
information now regularly include questions
about environmental issues and waste,
often driven by commitments made by
healthcare providers.
Two notable examples are the US
Environmentally Preferable Purchasing
policy and the UK National Health Services’
target to reduce all carbon emissions that they
can influence to net-zero by 2045.
Governments and industry are making
commitments to reduce emissions from the
healthcare sector, and this has highlighted the
importance of our internal efforts to decouple
carbon from growth.
Fisher & Paykel Healthcare | ANNUAL REPORT 202164Section 04|OPERATING SUSTAINABLY

How are you making your products
more sustainable?
Sustainability challenges are opportunities
to innovate. We think about sustainability
right from the start when we are designing a
new product, because early design decisions
can have a big impact over a product’s lifetime.
We have more than 50 product development
engineers across the company working on a
range of Ecodesign projects, including
sustainable packaging, bio-based plastic
technology and sustainable procurement.
One of the key tools we use is environmental
lifecycle assessment software. This helps us
better understand the sources of carbon
emissions based on evidence, as the results
are sometimes surprising.
For example, the main source of carbon
emissions related to our products is the
electricity used to power a device when it is in
use, and this varies country by country. The
total carbon footprint of a device used in the
US over its lifetime is double that of a device
used in New Zealand. This is because New
Zealand has a renewable energy supply, while
the grid mix in the US is far more carbon-
intensive. The carbon emissions associated
with the disposal of devices and consumables
at the end of life are far smaller as a
percentage of the total carbon footprint.
How do you reduce the impact
of product packaging?
We apply circular-economy principles and use
recyclable materials, such as cardboard and
PET. For example, the clamshell packaging for
our cannulas is made from recyclable PET, and
we mainly use recyclable cardboard for our
outer packaging. Instead of expanded
polystyrene, we use cardboard structures to
protect our devices during transport.
We also look for ways to reduce the weight
and volume of our packaging and create
space-efficient configurations. Often this is
best achieved by using soft plastic bags. One
of the challenges with soft plastic is recycling it
in hospitals – soft plastic recycling is available
in some markets, but not in others.
For plastics, we are actively exploring the use
of bio-based plastic made from renewable
sources. Using bio-based plastic could allow us
to design products that utilise the technical
benefits of plastic in healthcare applications
while also lowering the carbon footprint
associated with its production. This is rapidly
progressing technology, and we are working
with industry partners to trial new materials as
they are developed.
We have more than 50 product
development engineers across
the company working on a range
of Ecodesign projects, including
sustainable packaging,
bio-based plastic technology
and sustainable procurement.
ELLA MEISEL
Environmental Specialist – Ecodesign
Image: F&P Optiflow Junior 2 cannula
packaging is made from recyclable PET.
65Fisher & Paykel Healthcare | ANNUAL REPORT 2021Section 04 | OPERATING SUSTAINABLY

Risk management
Our approach to risk management
is to identify and manage risks
within acceptable levels. While no
risk management system can ever
be infallible, we seek to improve
the quality of our business
decisions by applying a best-
practice framework and aligning
with international standards.
GOVERNANCE OF RISK
Our Board is committed to its role of ensuring
quality, safety, compliance and effective risk
management. The Board provides oversight of
senior leadership’s management of risk. The
Board meets regularly with key risk
management functional leaders and receives
regular reports from senior representatives on
material risk and mitigation strategies.
The Audit & Risk Committee reports to and
assists the Board by reviewing and ensuring
our risk management processes (excluding any
risks related to quality, safety and regulatory
functions) can provide reliable information to
the Board on the status of major risks that
could impact our business.
The Quality, Safety & Regulatory Committee
reports to and assists the Board by reviewing
our quality, health and safety and regulatory
risk management approach. The Committee
ensures effective mechanisms and internal
controls are in place to identify and manage
areas of material risk and maintain compliance
with applicable regulations.
RISK MANAGEMENT FRAMEWORK
Our framework for managing risk is based on
five steps:
PURPOSE
Inform decision
making regarding
risks to the business
to create and
protect value
1.
ESTABLISH
THE CONTEXT
2.
IDENTIFY &
EVALUATE
THE RISK
3.
DEVELOP &
IMPLEMENT
THE RESPONSE
5.
MONITOR
& REVIEW
4.
COMMUNICATE
AND CONSULT
This framework helps to ensure we resolve
internally-identified risks in compliance with
laws and regulations; plan, make decisions and
prioritise opportunities and threats to strategic
objectives and new product introductions; and
respond in a prompt, efficient and effective
manner to future events that create
uncertainty or pose a significant risk.
INTERNATIONAL STANDARDS
The chart below identifies the
international standards that guide us in
three key areas.
Risk typeISO Standard
Business risks31000 – Risk Management
Principles and Guidelines,
with enhancements
to focus on our key
strategic objectives.
Product risks14971 – Medical Devices
Application of Risk
Management, specific to
medical device design and
manufacturing.
Health and safety
risks
45001 – Health and Safety,
with greater emphasis on
managing Critical Risks.
Fisher & Paykel Healthcare | ANNUAL REPORT 202166Section 04 | OPERATING SUSTAINABLY

MATERIAL BUSINESS RISKS AND
STRATEGIES TO MITIGATE
After completing our risk management
processes, as well as the materiality
assessment described in the Company
section of this report, we have identified
key areas of risk for our business and
strategies to mitigate them.
AreaRiskStrategies to mitigate
Health and
safety
Work-related injuries
or illnesses
Our global health, safety and wellbeing standards are aligned with ISO 45001,
with greater emphasis on managing critical risks.
We design and implement preventative and recovery risk controls for critical
health and safety risks across our global business.
We report our health and safety progress regularly to the Board of Directors
and to the Quality, Safety & Regulatory Committee three times a year.
Product
quality and
patient safety
Patients are harmed
as a result of using
our products
We operate a worldwide quality management system related to the design,
testing and manufacture of our products. Furthermore, we foster an
organisational attitude of product safety and continuous improvement.
Market accessMaintaining
regulatory
compliance is
required to market
and sell our products
in certain countries
We have a regulatory affairs process that enables us to obtain and maintain
product licenses, as well as a quality management system that ensures
compliance with applicable regulatory requirements.
We have monitoring steps in place to evaluate the effectiveness of our
programmes, and our executive management team conducts regular
management reviews.
Intellectual
property
Third parties
asserting IP rights
against us
We have a comprehensive patent portfolio across our technologies and
we actively and robustly manage IP litigation risk. As part of our product
development phase, we conduct freedom-to-operate searches during product
design. We monitor competitor patent filings and take action as required.
Sustainable
profitable
growth
Foreign exchange
losses
Currency risk is hedged in accordance with the Board-approved hedging
policy. The hedging policy aims to reduce the impact of short-term currency
fluctuations on our cash flow. We use derivative financial instruments to hedge
exposures in the current and future years. A diversity of currency exposures
also provides some natural hedge.
Business
continuity
Continuity and
quality of supply
We actively monitor our end-to-end processes and systems through an
internal risk management process and implement actions to prevent
disruption. We use a business impact analysis to identify, understand and
quantify the impact of a material disruption to a key facility, location, supplier
or business process. This approach enables us to prioritise the most significant
potential exposures to the business. It is also aligned with our crisis planning
framework, which has been important during our response to COVID-19.
Cyber security
and data
protection
Cyber security
attack resulting
in disruption to
operations and data
breach
To manage our risk and protect the data entrusted to us, we are constantly
reviewing and honing our control mechanisms to ensure our protections
can proactively respond to developing cyber threats. We continue to use
independent reviews to test and identify potential risks to ensure we focus on
the right cyber risks.
67Fisher & Paykel Healthcare | ANNUAL REPORT 2021Section 04 | OPERATING SUSTAINABLY

PRODUCT QUALITY AND PATIENT SAFETY
Patient safety remains our highest priority, so
our products have to meet the highest quality
standards. We manage this risk through
processes that drive continuous improvement
in quality throughout the lifecycle of our
products. These include:
• Proactive quality control mechanisms within
our manufacturing operations
• Collecting and using data and statistical
analysis to make improvements
• Interventions to correct a process before
product quality is compromised.
These processes help to ensure that our
customers and patients receive high-quality
products that are safe and effective.
BUSINESS CONTINUITY PLANNING
Over the past several years, we have increased
our focus on business continuity planning.
Our goal is to anticipate and plan for potential
crises that may cause a significant disruption
to our business and subsequently impact
customers, products and shareholders. We
review our business continuity framework
regularly to adapt to new and evolving threats,
such as climate-related events, cybersecurity
incidents, changes due to business growth, and
increased customer demand for products. We
also conduct simulations regularly to provide
confidence that our framework is tested,
embedded and continuously improved.
Before the COVID-19 pandemic emerged,
we had already created a framework for crisis
management and identified processes to drive
the framework. We also had designed visual
management and communication tools to
support the framework.
The COVID-19 pandemic tested, and in many
ways strengthened, our business continuity
plans. Although it brought some unanticipated
disruptions to our business, our risk framework,
crisis simulations and previous experience
managing other events served us well.
Early in the pandemic, we formed a crisis
response team with people from across
the business. Initially, the team was formed
to handle some of the early challenges of
acquiring raw materials, increasing capacity
and managing hundreds of inquiries from
the media, government officials, investors
and hospitals.
Within weeks, the team had identified 13
different workstreams to focus on a crisis
response within four broad categories.
• People, health and safety
• Manufacturing, distribution and capacity
• Social responsibility
• Communications
Each of these workstream teams had a
designated leader empowered to make
decisions. The teams met several times
a day in order to evaluate rapidly changing
conditions, inform executives and make
decisions. We used this framework to
respond to the COVID-19 pandemic at our
facility in Mexico as well.
As we managed through the pandemic
during the 2021 financial year, we kept detailed
records of lessons learned and further
developed our business continuity plans.
The experience of managing through a
pandemic developed our people’s ‘muscle
memory’ and strengthened our ability to
respond in a crisis. It created opportunities
to identify subject-matter experts across the
business, built relationships between people
previously unconnected, and strengthened key
relationships with our suppliers and customers,
as well as leaders in government, trade and
foreign affairs. Our executive management
team is confident that the business is more
resilient now than before the crisis began.
Risk management – Continued
Fisher & Paykel Healthcare | ANNUAL REPORT 202168Section 04|OPERATING SUSTAINABLY

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HEALTH AND SAFETY
At Fisher & Paykel Healthcare, we are
committed to ensuring the health, safety,
and wellbeing of our people. During the
2021 financial year, keeping our people and
products safe during the pandemic was one
of our key priorities.
As an essential service, our operations
have continued during COVID-19 lockdowns.
Our health and safety approach was – and
remains – to meet or exceed local government
recommendations.
At our largest manufacturing facility in
New Zealand, we implemented mandatory
masks, social distancing, extra cleaning
protocols and Bluetooth contact tracing cards.
Gowning areas, production lines, and cafeterias
were rearranged, physical barriers erected and
desks moved to create more space between
people. Occupancy in meeting rooms and work
areas is limited. We have health professionals
on site, along with a COVID-19 support team
who assist with contact tracing efforts and
answer questions 24/7.
At our Mexico site, we took preventative
measures to protect our people before the
pandemic arrived in Tijuana. Our Mexico
leaders created a COVID-19 committee to
monitor the pandemic’s impact and implement
safety measures across the facility. This
included masks and goggles, sanitising mats
and cleaning kits. Capacity limits were set for
meeting rooms, and acrylic dividers were
added in manufacturing areas and cafeterias.
During the worst of the pandemic, employees
received essential groceries.
Special leave entitlements have helped to
ensure our people could take time off work
if they needed to self-isolate, and we have
provided discretionary COVID-19-related leave
so that workers can make the right decision
without fear of losing income. These changes
will remain in place until vaccination
programmes have been rolled out globally,
and the threat of COVID-19 has diminished.
COVID-19-related health and safety measures
will continue to be a priority during the 2022
financial year. In addition, we will continue our
focus on aligning our operations with ISO
45001 and on managing Critical Risks across
our global operations.
Image: We implemented Bluetooth
contact tracing cards for all people
working in New Zealand.
Photo: An employee at our Tijuana
facility seeks advice from a medical
professional on site.
69Fisher & Paykel Healthcare | ANNUAL REPORT 2021Section 04 | OPERATING SUSTAINABLY