FPH announces its results for the 2023 financial year

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

Fisher & Paykel Healthcare announces its results for the 2023 financial year

Auckland, New Zealand, 26 May 2023 – Fisher & Paykel Healthcare Corporation Limited today
announced its results for the full year ended 31 March 2023.

Total operating revenue for the 2023 financial year was $1.58 billion, down 6% or 9% in constant
currency from the 2022 financial year. Net profit after tax was $250.3 million, a 34% decline from the
2022 financial year, or a 39% decline in constant currency.

For the second half, operating revenue grew 14% to $890.5 million, or 12% growth in constant
currency from the second half of 2022, driven by strong growth in Hospital new applications
consumables and OSA masks revenue.

Managing Director and CEO Lewis Gradon said, “We are coming out of three financial years that
were impacted by the COVID-19 pandemic, and our people, suppliers and customers have worked
tirelessly to meet global demand surges. The second half result was encouraging as market
conditions progressed towards more of a normal state and both our Hospital and Homecare product
groups delivered good growth.”

Hospital product group revenue for the full year was $1.02 billion, a 15% decrease compared to the
previous year and an 18% decrease in constant currency. Hospital hardware sales were down 53%
in constant currency compared to the 2022 financial year, a year that was more heavily impacted by
global COVID-19 surges. During the 2023 financial year, hardware sales in countries or regions that
did not experience COVID-19 surges were tracking somewhat close to pre-pandemic patterns.

Hospital new applications consumables revenue for the full year was down 6% from the prior year in
constant currency, as hospital customers worked through their excess inventory. This trend abated
throughout the year, and new applications consumables revenue for the second half of 2023 was up
13% in constant currency over the second half of 2022.

Homecare product group revenue for the full year was a record $553.8 million, 18% higher than the
previous year, and 13% higher in constant currency. The company saw strong growth in masks and
accessories revenue, which in constant currency was up 17% for the full year, and up 24% for the
second half.

“Our Evora Full mask for OSA launched in the United States in May 2022 and contributed
significantly to the strong OSA masks revenue. It’s one of the most positive new mask launches we
have ever experienced based on customer feedback and initial sales performance in the regions
where it is available,” said Mr Gradon.

Gross margin for the year was 59.4%, a 369 basis point decrease in constant currency. Margin was
impacted by continued elevated freight costs and manufacturing inefficiencies as the company
rebalanced demand fluctuations with manufacturing throughput during the year.

Dividend and dividend reinvestment plan

Fisher & Paykel Healthcare’s board of directors approved a final dividend of 23.0 cents per share for
the second half of the year. This brings the total dividend for the 2023 financial year to 40.5 cents per
share, an increase of 3% over the 2022 financial year.

The final dividend, carrying full New Zealand imputation credit, will be paid on 7 July 2023 with a
record date of 27 June 2023.

The dividend reinvestment plan, under which eligible shareholders can elect to reinvest all or part of
their cash dividends in additional shares, will again be made available in respect of the 2023 final
dividend. A 3% discount will be applied when determining the price per share in respect of the 2023
final dividend.

Product focus

New product launches remain a core part of Fisher & Paykel Healthcare’s growth strategy. During
the 2023 financial year the company invested $174.3 million into research and development to
progress its new products in the pipeline.

“In May last year we announced our new Airvo 3 device for delivering nasal high flow, and we have
been pleased to see a very positive reception. We recently received 510(k) approval for the Airvo 3,
which clears the way for its sale into the United States in the coming months,” said Mr Gradon.

During the 2023 financial year, the company continued to add people to the global sales team,
particularly in Anesthesia, reflecting the company’s aspiration to accelerate the Anesthesia business
into a substantial contributor to overall revenue growth.

Infrastructure

During the 2023 financial year, Fisher & Paykel Healthcare announced the acquisition of 105
hectares of land in Karaka, Auckland for a second New Zealand campus. A 10% deposit of the
$275 million purchase price was paid in September 2022, and a payment of $189.5 million occurred
on 11 May 2023. A further $43 million will be paid in January 2026, and the final instalment of
$15 million will be paid in December 2026.

In the meantime, earthworks are continuing on the company’s existing East Tāmaki campus to
prepare for the construction of a fifth facility, which will complete the site.

Outlook for the 2024 financial year

At current exchange rates*, guidance assumptions for the 2024 financial year include no significant
respiratory disease events, and result in full year operating revenue of approximately $1.70 billion,
with approximately similar revenue growth rates for both Hospital and Homecare product groups.

Capital expenditure for the 2024 financial year is expected to be approximately $450 million as the
company progresses its land and building programmes, and interest expense is expected to be
approximately $16 million. Operating expense growth is anticipated to be approximately 12% at
current exchange rates, reflecting the company’s investment in R&D and sales people during the
2023 financial year.

“Prior to the pandemic, we had a track record of incremental improvements in gross margin. During
the last three years, our responsibility was to get as much product as possible into the hands of our
customers. Now, as every team in our business turns back to efficiency gains, we are confident in
our ability to return to our long-term target of 65% within three to four years. For the 2024 financial
year, we anticipate a gross margin improvement of approximately 200 basis points in constant
currency, or an improvement of approximately 100 basis points at current exchange rates,” said Mr
Gradon.

“It has been very positive to see our people, our clinical partners and our suppliers spend more time
face-to-face over the past year. We look forward to this continuing in the year ahead. Connection is
at the core of our business – the quality of our relationships and our interactions is a major
determinant of our success,” concluded Mr Gradon.







*At May 2023 exchange rates of NZD:USD 0.63, NZD:EUR 0.58, NZD:MXN 12.00.

Overview of key results for the second half of the 2023 financial year
• 14% growth in operating revenue to $890.5 million, 12% growth in constant currency.
• Net profit after tax of $154.4 million, a decline of 0.5% or 3% in constant currency.
• 9% growth in Hospital operating revenue to $584.8 million, 7% growth in constant currency.
• 13% 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
72% of Hospital consumables revenue.
• 25% growth in Homecare operating revenue to $303.9 million, 22% growth in constant currency.
• 28% growth in OSA masks revenue, or 24% growth in constant currency.

Overview of key results for the 2023 financial year
• 34% decline in net profit after tax to $250.3 million, 39% decline in constant currency.
• 6% decline in operating revenue to $1.58 billion, 9% decline in constant currency.
• 15% decline in Hospital operating revenue to $1.02 billion, 18% decline in constant currency.
• 6% constant currency revenue decline for new applications consumables.
• 18% growth in Homecare operating revenue to $553.8 million, 13% growth in constant currency.
• Investment in R&D was 11% of revenue, or $174.3 million.
• 2% increase in final dividend to 23.0 cps (2022: 22.5 cps).
• 3% increase in total dividends for the financial year to 40.5 cps (2022: 39.5 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
GM Corporate Communications
karen.knott@fphcare.co.nz
+64 21 713 911
Hayden Brown
Head of Capital Markets and Investor Relations
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 2023
• Investor Presentation 2023
• NZX Results Announcement
• NZX Distribution Notice

Full Year Results Conference Call
Fisher & Paykel Healthcare will host a conference call today to discuss the results for the 2023
financial year. The conference call is scheduled to begin at 10:00am NZST, 8:00am AEST Friday 26
May (5:00pm USEDT, Thursday 25 May) and will be broadcast simultaneously online.

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 listen and participate in the conference call via phone, please register via ‘GlobalMeet’ by clicking
this link. Once registered, click ‘Call Me’ and you will receive a phone call connecting you through to
the conference line.

2023 US / Mexico Investor Event
Fisher & Paykel Healthcare will hold an Investor Event on Thursday 14 September 2023 and Friday
15 September 2023 in Tijuana, Mexico and Irvine, California. The Investor Event will provide the
opportunity for investors and analysts to visit our operations in Tijuana, Mexico and Irvine, California
and meet leaders from our Mexico and US teams.

To register for the event, please visit https://www.fphcare.com/nz/events/investor/investor-day/.

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 107 of the company’s
Annual Report 2023, and the company’s constant currency framework can be found on the
company’s website at www.fphcare.com/ccf.

---

Results in Brief


Year Ended
Year Ended
% Change
(Reported)
% Change
(Constant
Currency
1
)
31 Mar 22 31 Mar 23
NZ$M NZ$M
(except as otherwise
stated)
(except as otherwise
stated)
FINANCIAL PERFORMANCE


Total operating revenue 1,681.7 1,581.1 -6% -9%
Cost of sales (629.0)
(642.7) 2% 0%
Gross profit 1,052.7
938.4 -11% -14%
Gross margin 62.6% 59.4% -325bps -369bps
Selling, general and administrative expenses (393.1)
(431.9) +10% +4%
Research and development expenses (154.0)
(174.3) +13% +13%
R&D percentage of operating revenue 9.1%
11.0% +187bps +228bps
Total operating expenses (547.1)
(606.2) +11% +7%
Operating profit before financing costs 505.6 332.2 -34% -39%
Operating margin 30.1% 21.0% -905bps -944bps
Net financing income (expense) (1.4)
(4.2) +200% +60%
Profit before tax 504.2
328.0 -35% -40%
Tax expense (127.3) (77.7) -39%
-42%
Profit after tax 376.9
250.3 -34%
-39%
Effective tax rate 25.2% 23.7%

Effective tax rate excluding R&D tax credit 28.2% 28.5%





Revenue by Region:




North America 665.1
683.8 3%

Europe 468.1
427.6 -9%

Asia Pacific 438.8
399.0 -9%

Other 109.7
70.7 -36%

Total 1,681.7
1,581.1 -6%





Revenue by Product Group:


Hospital 1,207.1
1,023.5 -15%

Homecare 469.5
553.8 +18%

Core products sub-total 1,676.6
1,577.3 -6%

Distributed and other 5.1 3.8 -25%

Total 1,681.7
1,581.1 -6%


FINANCIAL POSITION
As at 31 Mar 22
NZ$M
(except as otherwise
stated
)
As at 31 Mar 23
NZ$M
(except as otherwise
stated
)

Tangible assets 1,936.6 2,022.3 +4%
Intangible assets
2
170.4 182.2 +7%
Total assets 2,107.0
2,204.5 +5%
Total liabilities (427.3) (451.1) +6%
Shareholders’ equity 1,679.7
1,753.4 +4%
Gearing -16.3% -2.3% +14%
Net tangible asset backing (cents per share) 261 272 +4%
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 22 31 Mar 23
NZ$M NZ$M
(except as otherwise
stated)
(except as otherwise
stated)



CASH FLOWS

Net cash flow from operating activities 324.3
238.2 -27%
Net cash flow (used in) investing activities (89.5)
(11.3) -87%
Net cash flow (used in) financing activities (235.8)
(197.1) -16%



SHARES OUTSTANDING

Weighted average basic shares outstanding 576,949,087
578,140,116

Weighted average diluted shares
outstanding
579,992,621
581,630,919

Basic shares outstanding at period end 577,405,878
579,356,576




DIVIDENDS AND EARNINGS PER SHARE

Dividends per share (cents) – declared 39.5
40.5 +3%
Basic earnings per share (cents) 65.3
43.3 -34%

---

Annual Report 2023
CONNECTION2023

Ours is a deeply human business –
CONNECTION is at our core.
Success depends on our teams, our clinical partners,
our suppliers and our customers coming together
to devise, design, manufacture and deliver our
products and therapies.
This year, more of these interactions have happened
face-to-face. This has proven a powerful catalyst for
strengthening relationships and deepening
our connection to our purpose.

CONNECTING
WITH CLINICIANS
TO ADVANCE
CLINICAL CHANGE
WITH OUR SALES TEAMS
AND CUSTOMERS TO GET
PRODUCT TO PATIENTS
WITH INVESTORS TO
SHARE OUR SUSTAINABLE,
PROFITABLE GROWTH STORY
OUR BUSINESS WITH OUR
WIDER RESPONSIBILITIES TO
SOCIETY AND THE ENVIRONMENT
TO OUR PURPOSE
OF IMPROVING PATIENT
CARE AND OUTCOMES

Who we are
18
Where we operate
19
How our business works
20
How we deliver value
21
Our culture, values and beliefs
22
What matters most
23
Our Board
26
Our Executive management team
28
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 spot financial currency fluctuations and hedging results, and
has been prepared on a consistent basis each financial year. A
reconciliation between reported results and constant currency results is
available on page 107 of this report. The company’s constant currency
framework can be found on our website at www.fphcare.com/ccf.
LEWIS GRADON
MANAGING DIRECTOR
AND CHIEF EXECUTIVE OFFICER
ABOUT THIS REPORT
Welcome to our 2023 Annual Report
– Connection. This report highlights the work
we have done this year to improve patient care
and outcomes across the globe and the financial
results we achieved while doing so.
Our people, investors and customers can also read
about our track record with regard to non-financial
matters, including environment, social and
governance (ESG) topics. Our ESG commitments
and metrics are contained in Section 3 of this
report, called ‘Operating Sustainably’.
This report aligns with the 2021 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).
We welcome your feedback and suggestions
for improvement. Please send any questions or
comments to investor@fphcare.co.nz. A digital
version of this report, along with all previous
annual and interim reports are available at
www.fphcare.com/investor-reports.
This report covers the financial year ended
31 March 2023 and is dated 25 May 2023. 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.
THE BUSINESS YEARTHE COMPANY
0102
Results at a glance
06
Report from the Chair
08
Report from the Managing Director
& Chief Executive Officer
10
Hospital & Homecare performance overview
14
SCOTT ST JOHN
BOARD CHAIR
02Section 01 | THE BUSINESS YEARFisher & Paykel Healthcare | ANNUAL REPORT 2023

Five year summary
144
Glossary
147
GRI index
148
TCFD index
152
Directory
153
People
32
People by the numbers
42
Community
46
Environment
50
Suppliers
56
Sustainable Development Goals
64
Risk management
68
Governance
76
Remuneration
94
Financial commentary
104
Financial statements
108
Notes to financial statements
112
Auditor’s report
136
OPERATING SUSTAINABLYFINANCIALSAPPENDICES
030405
03Section 01 | THE BUSINESS YEARFisher & Paykel Healthcare | ANNUAL REPORT 2023

04Section 01Ā|ĀTHE BUSINESS YEARFisher & Paykel Healthcare | ANNUAL REPORT 2023

01
THE
BUSINESS
YEAR
05Section 01 | THE BUSINESS YEARFisher & Paykel Healthcare | ANNUAL REPORT 2023

OPERATING REVENUE
$1.58b
▼

6% | 2022 $1.68B
GROSS MARGIN
59.4%
325 BASIS POINTS DECREASE
HOSPITAL REVENUE
$1.0b
▼

15% | 2022 $1.2B
NET PROFIT AFTER TAX
$250.3m
▼

34% | 2022 $376.9M
TOTAL DIVIDEND FOR YEAR
FULLY IMPUTED
40.5cps
▲

3% | 2022 39.5CPS
HOMECARE REVENUE
$553.8m
▲

18% | 2022 $469.5M
SPEND ON R&D
$174 . 3m
11% OF OPERATING REVENUE
RESULTS
AT A GLANCE
06Section 01 | THE BUSINESS YEARFisher & Paykel Healthcare | ANNUAL REPORT 2023

BUSINESS HIGHLIGHTS
43%
27%
25%
5%
the lives of 20 million
patients around the world.
regulatory clearance in the
United States for Airvo™ 3 and
progressed product rollout.
our online Education Hub
for clinicians in the
United States.
development of
our new manufacturing
facility in China.
Overseas Investment Office
approval for the purchase of
land at Karaka for our second
New Zealand campus.
expansion of our
anesthesia sales team to
grow awareness of the
benefit to patients.
OPERATING REVENUE
NZ$ MILLIONS
NET PROFIT AFTER TAX
NZ$ MILLIONS
REVENUE BY PRODUCT GROUP
12 MONTHS TO 31 MARCH 2023
REVENUE BY REGION
12 MONTHS TO 31 MARCH 2023
120+
COUNTRIES
Hospital
Homecare
Distributed & Other
North America
Europe
Asia Pacific
Other
65%
<1%
35%
1920212223
1,681.7
1,581.1
1,971.2
1,070.4
1,263.7
0.000000
87.366667
174.733333
262.100000
349.466667
436.833333
524.200000
1920212223
524.2
209.2
287.3
376.9
250.3
LAUNCHEDCOMMENCED
CONTINUED
SECUREDIMPACTED
RECEIVED
07Section 01 | THE BUSINESS YEARFisher & Paykel Healthcare | ANNUAL REPORT 2023

SCOTT ST JOHN
Board Chair
REPORT FROM
THE CHAIR
Around the middle of the 2022
calendar year, we reached a turning
point in the COVID-19 pandemic.
All around the world, pandemic
restrictions began to fall away, and
people could once again organise
travel, visit customers and gather in
large groups. Across Fisher & Paykel
Healthcare, the team breathed a
collective sigh of relief. This is a
business that values face-to-face
interaction, so our people took
advantage of the open borders
to strengthen connections – with
clinicians, with customers, and
with each other.
Our sales teams in North America, Europe
and other parts of the world gathered for
their first annual conferences in several years,
and they were able to share knowledge and
get critical training on newly released products.
Our teams also reconnected with renowned
clinicians and researchers at global knowledge-
sharing forums. Those events provided
opportunities to strengthen relationships with
key opinion leaders and supported our
engineers' close collaboration with the medical
community. Most importantly, our people
reconnected with customers and continued
to supply them with essential, life-preserving
products for patients.
The company’s success at meeting demand
surges and progressing the release of new
products resulted in another solid performance
for the 2023 financial year. Full-year operating
revenue was $1.58 billion, and net profit after
tax was $250.3 million. The full-year result was
impacted by some hospital customers working
through excess inventory during the first half
of the year – a trend which had largely abated
during the second half.
INFRASTRUCTURE PLANNING
The 2023 financial year was a milestone year
for Fisher & Paykel Healthcare’s long-term
infrastructure planning. In September we
announced the company had entered into
an agreement to acquire a 105-hectare
(259-acre) site in Karaka, Auckland, for a
second New Zealand campus. We are pleased
to report the purchase was approved by the
New Zealand Overseas Investment Office
(OIO), and the transaction is moving forward.
At two-and-a-half times the size of our current
Auckland campus, the land offers much-
needed space for expansion over the next
30 to 40 years. These plans reaffirm our
confidence in our long-term opportunities
and demonstrate our strong commitment to
R&D and manufacturing in New Zealand.
In the meantime, earthworks are continuing
at the existing East Tāmaki campus to prepare
for the construction of a fifth facility which
will complete the site.
08Section 01 | THE BUSINESS YEARFisher & Paykel Healthcare | ANNUAL REPORT 2023

Like the other four buildings on the campus,
this building will provide additional space for
research and development, as well as
expanding the company’s manufacturing
footprint. During the year, we opened our third
facility in Tijuana, Mexico, and we are making
good progress on the development of a new
manufacturing facility in Guangzhou, China.
ENVIRONMENTAL AND SOCIAL
RESPONSIBILITY PRIORITIES
Last year, we highlighted the company’s
updated Environmental & Social Responsibility
policy and a newly established governance
group to provide strategic direction. This year,
the group focused on embedding the updated
policy across the business, beginning with
more than 100 of our global senior leaders, and
for the 2024 financial year, environmental and
social responsibility goals and targets were
added into our annual business plans.
While our response to the challenges of climate
change is multi-faceted, managing carbon
emissions remains a significant component
of it. Fisher & Paykel Healthcare has been
measuring its carbon footprint since 2012, and
we set Science Based Targets for Scope 1 and 2
emissions back in 2020. We are investing time
and energy to develop a long-term carbon
reduction plan, aligned with net zero CO
2
e by
2050, that is fit-for-purpose. ‘Short-term-ism’
does not feature in the way we craft our plans.
In the meantime, we are continuing to progress
ambitious initiatives that move us in the right
direction. During the 2023 financial year, this
included trialling an internal carbon price and
the ongoing installation of large-scale solar
arrays to provide electricity at the Mexico
manufacturing site.
BOARD
As we announced previously, Cather Simpson,
PhD, joined the Board in June 2022 ahead of
Geraldine McBride’s retirement, and Tracey
Barron was selected to participate in the Future
Directors programme. Their perspectives and
experience are proving valuable, and we are
already benefitting from their contributions.
The Board has three permanent committees
which support the Board – the Audit & Risk
Committee; the Quality, Safety & Regulatory
Committee; and the People & Remuneration
Committee. With Board succession planning in
mind, changes were made to the composition
of the committees effective from January 2023.
The current makeup of each committee is
outlined in the Governance section of this report.
DIVIDEND
The Board of Directors has approved a
dividend of 23.0 cents per share for the second
half of the year. This takes the total dividend
for the 2023 financial year to 40.5 cents per
share, an increase of 3 per cent over the 2022
financial year. The dividend will be paid on
7 July 2023. During the year we reactivated
our dividend reinvestment plan through which
eligible shareholders can opt to invest all or
part of their cash dividends in additional
shares, with an applicable 3 per cent discount.
PROFIT SHARE
On behalf of the Board, I want to thank the
people of Fisher & Paykel Healthcare for
another strong performance. It is our custom
to recognise our employees’ efforts and share
in the profit. For FY23, the Board approved a
discretionary profit-sharing payment totalling
$10 million for employees who have worked
for the company for a qualifying period.
CONFIDENCE
Last year approximately 20 million patients
were treated with Fisher & Paykel Healthcare
products. The number of patients who could
potentially benefit from our products each
year is more than ten times that. This market
opportunity, combined with our people’s
expertise at changing clinical practice, inspire
the Board with confidence for the future.
In closing, I would I like to thank you,
our shareholders, for your confidence in
Fisher & Paykel Healthcare. Your continued
support will help the company put innovative
products in the hands of healthcare providers
for generations to come.
Scott St John
Board Chair
09Section 01 | THE BUSINESS YEARFisher & Paykel Healthcare | ANNUAL REPORT 2023

LEWIS GRADON
Managing Director and Chief Executive Officer
As a supplier of frontline therapies
during the pandemic, we felt a
duty of care to get as much
product as possible into the hands
of customers. With the exception
of keeping our people safe and
well, the other considerations we
ordinarily juggle as a business
became secondary. Fundamentally,
it was about doing the right thing
and putting the patient first.
With demand patterns and market conditions
progressing towards more of a normal state,
we are returning to our normal behaviours
as a business, keeping the patient first, and
ensuring we do that efficiently in a sustainable,
profitable way. Our focus is now on ensuring
we have the discipline to capture the long-term
opportunities in front of us.
2023 FINANCIAL RESULT
Looking back at the 2023 financial year,
operating revenue came in at $1.58 billion,
6 per cent lower than the previous financial
year, or 9 per cent lower in constant currency.
Net profit after tax in 2023 was $250.3 million,
34 per cent lower than the previous year,
or 39 per cent lower in constant currency.
We were again lapping a year which saw a
significant COVID-19-related impact on sales.
Our result in the second half was particularly
encouraging, with operating revenue of
$890.5 million, up 14 per cent on the second
half in 2022, or 12 per cent in constant
currency. This was driven by Hospital new
applications consumables revenue growing
by 14 per cent and OSA masks revenue
increasing by 28 per cent on the prior
corresponding period.
Hospital product group revenue for the full
year was $1.02 billion, a 15 per cent decrease
compared to the previous year and 18 per cent
lower in constant currency. Hospital hardware
sales were down 53 per cent in constant
currency compared to the 2022 financial year,
with hardware sales in countries or regions that
did not experience COVID-19 surges tracking
somewhat close to pre-pandemic patterns.
REPORT FROM THE
MANAGING DIRECTOR
& CHIEF EXECUTIVE OFFICER
10Section 01 | THE BUSINESS YEARFisher & Paykel Healthcare | ANNUAL REPORT 2023

Hospital new applications consumables
revenue was down 6 per cent on the prior year
in constant currency, though we saw a strong
performance in the second half with revenue
up 13 per cent on 2022’s second half.
Homecare product group revenue was
$554 million, 18 per cent higher than the
previous year, and 13 per cent higher in
constant currency. Growth in masks and
accessories revenue was especially pleasing,
up 17 per cent in constant currency on the
prior year. Our Evora™ Full mask has
maintained momentum since its launch last
year, and our team remains hard at work on
more great additions to our product range –
we are looking forward to sharing more on
this later in the year.
Gross margin for the year was 59.4 per cent, a
369 basis point decrease in constant currency.
Headwinds such as elevated freight rates and
manufacturing inefficiencies are beginning to
ease, though we are absorbing inflationary
raw material and manufacturing costs. Prior
to the pandemic, we had a track record of
incremental improvements in gross margin
each year, and we expect that returning to our
normal focus on operational efficiencies rather
than a supply-at-all-costs approach will return
us to our long-term target of 65 per cent
within the next three to four years.
We have talked at length in prior
announcements about how the amount of
hardware placed through the pandemic
prompted us to accelerate our investment in
our salesforce and the development of new
products. This is evident in our people numbers
over the past year – we added more than 80
R&D roles and almost 100 sales, marketing and
distribution positions. As we move forward, it’s
important that our investment growth aligns
with our revenue growth over the longer term.
What’s also important is our progress on
building out our infrastructure. We have
repeatedly signalled the importance of
long-term infrastructure planning to help
us deliver on our aspirations. A large degree
of this commitment is front-loaded over the
near term, both in terms of the upcoming
spend required on our fifth building at our
East Tāmaki campus and the completion of
the land purchase for our second New Zealand
campus at Karaka. Scott has already
mentioned our receipt of OIO approval for
the latter – we are pleased to move this project
into the next phase. This investment in our
long-term infrastructure will see us moving
into a net debt position and incurring higher
interest expense over the coming few years.
We have repeatedly
signaled the importance
of long-term infrastructure
planning to help us deliver
on our aspirations.
11Section 01 | THE BUSINESS YEARFisher & Paykel Healthcare | ANNUAL REPORT 2023

REACHING OUR MARKETS
We continued to build out our anesthesia sales
team which is focused on educating clinicians
on the benefits of our Optiflow Switch™
and Optiflow Trace™ technology. This reflects
our aspiration to grow this business into a
substantial contributor to overall revenue.
New product launches remain a core part
of our growth strategy. We announced our
new Airvo™ 3 device last May and we have
released it to a positive reception in Australia,
New Zealand, Canada and parts of Europe.
We welcomed the receipt of 510(k) approval
for the Airvo 3 base model, which clears the
way for sale into the United States in the
coming months. Our teams are working hard
on additional regulatory clearances and new
product launches in the year to come and
we look forward to providing updates in
due course.
OPERATING SUSTAINABLY
As Scott has covered in his report,
environmental and social responsibility remains
a priority. Multiple teams across the business
are working hard to embed our intent of
creating a lasting, positive impact on society
and the environment into our way of operating.
The ‘Operating Sustainably’ portion of this
report outlines our progress in a range of areas
over the past year.
One particular highlight for us was our Mexico
team receiving a Human Rights – Committed
Company Distinction award from the Baja
California State Human Rights Commission
in March 2023. This is great recognition for
the work that our team is doing to ensure our
people are valued and well-treated. This is in
addition to the impressive strides being made
on the environmental front in Tijuana – the
team last year commissioned a new solar
array to provide a significant portion of the
site’s electricity and has recently activated
a water re-use plant to substantially reduce
our water footprint.
New product launches
remain a core part of
our growth strategy.
We announced our new
Airvo 3 device last May
and we have released it
to a positive reception in
Australia, New Zealand,
Canada and Europe.
12Section 01Ā|ĀTHE BUSINESS YEARFisher & Paykel Healthcare | ANNUAL REPORT 2023

LOOKING AHEAD
The opportunities before us are compelling
and we are well-placed to capitalise on them.
There is a unique pattern of alignment for our
business – we have geographic growth, we
have infrastructure expansion underway, we
have a growing body of clinical evidence, and
we have underpenetrated markets. It’s also
hard to remember a time when we had a
more promising pipeline of products.
All of these factors are working in our favour.
In the near term, it is paramount that we
continue to manage the transition from a
supply-at-all-costs mindset to supplying in
a sustainable, profitable manner. Given our
long-term track record, I am confident in
our ability to do so.
THANK YOU
Connection is at our core as a business – the
quality of our relationships and our interactions
are a major determinant of our success. To
that end, it has been very positive to see our
people, our clinical partners and our suppliers
spend more time face-to-face over the past
year. There is plenty more of this to come in
the year ahead.
I would like to thank everyone involved in
these interactions, both internal and external,
for their efforts to improve patient care and
outcomes. As always, my thanks also go to
our shareholders for your continued support.
Lewis Gradon
Managing Director and
Chief Executive Officer
13Section 01 | THE BUSINESS YEARFisher & Paykel Healthcare | ANNUAL REPORT 2023

Section 01 | THE BUSINESS YEARFisher & Paykel Healthcare | ANNUAL REPORT 2023
Hospital
65%
OF OPERATING REVENUE6%
OPERATING REVENUE
▼ 15%
$1.0B
Our Hospital product group
includes products used in invasive
ventilation, noninvasive
ventilation, nasal high flow
therapy, anesthesia, and
laparoscopic and open surgery.
Not only do these products help
healthcare providers improve
patient outcomes, they often
deliver economic benefits as well,
by reducing the need to escalate
care and shortening patient stays
in hospital.
CONSTANT CURRENCY REVENUE FROM
NEW APPLICATIONS CONSUMABLES
PRODUCT GROUP OVERVIEW
OUR BUSINESS IS STRUCTURED IN
TWO PARTS: HOSPITAL AND HOMECARE.
14Section 01 | THE BUSINESS YEARFisher & Paykel Healthcare | ANNUAL REPORT 2023

Fisher & Paykel Healthcare | ANNUAL REPORT 2023
Homecare
35%
OF OPERATING REVENUE17%
OPERATING REVENUE
▲ 18%
$553.8M
Our Homecare product group
includes devices and systems
used to treat obstructive sleep
apnea (OSA) and provide
respiratory support in the
home. These include our CPAP
therapy masks as well as flow
generators, interfaces, and data
management technologies.
CONSTANT CURRENCY REVENUE
FROM OSA MASKS
15Section 01 | THE BUSINESS YEARFisher & Paykel Healthcare | ANNUAL REPORT 2023

16Section 02Ā|ĀTHE COMPANYFisher & Paykel Healthcare | ANNUAL REPORT 2023

02
THE
COMPANY
17Section 02 | THE COMPANYFisher & Paykel Healthcare | ANNUAL REPORT 2023

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. 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.
WHO WE ARE
18Section 02 | THE COMPANYFisher & Paykel Healthcare | ANNUAL REPORT 2023

Direct sales offices
Distribution centres
Manufacturing facilities
WHERE WE OPERATE
53
Countries with
F&P people
2,147
People in North America,
including Mexico
379
People in Europe
3,538
People in New Zealand
500
People in the
rest of the world
Note: people numbers are represented as full-time equivalents.
19Section 02 | THE COMPANYFisher & Paykel Healthcare | ANNUAL REPORT 2023

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 products
are sold either direct to customers or through
distributors. Our largest markets by revenue are
North America, Europe and Asia Pacific.
MANUFACTURING
We manufacture our products in
New Zealand and North America.
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
20Section 02Ā|ĀTHE COMPANYFisher & Paykel Healthcare | ANNUAL REPORT 2023

HOW WE DELIVER VALUE
OUR INPUTSOUR OUTPUTS
Ageing population | Technology advancement | Healthcare costs increasing | Other external factors
MARKET CONTEXT
Our
6,500+
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
A lasting,
positive impact
on society
and the
environment
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 and profitable over the long term.
OUR PURPOSE:
Improving care and
outcomes through inspired
and world-leading
healthcare solutions.
21Section 02 | THE COMPANYFisher & Paykel Healthcare | ANNUAL REPORT 2023

OUR CULTURE,
VALUES AND BELIEFS
We have a 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 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.
22Section 02 | THE COMPANYFisher & Paykel Healthcare | ANNUAL REPORT 2023

WHAT MATTERS MOST
Investors and other stakeholders
are increasingly using non-financial
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.
We worked with an independent consultant,
thinkstep-anz, to obtain feedback from
multiple stakeholders. The result is an updated
materiality assessment informed by the
principles of the 2021 GRI Sustainability
Reporting Standards. We intend to update our
materiality assessment within the coming
financial year. 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. For more information
on the Sustainable Development Goals that we
contribute towards, please refer to Section 3 of
this report, Operating Sustainably.
OUR STAKEHOLDERS
EMPLOYEES
CLINICIANS
CUSTOMERS
SUPPLIERS
INVESTORS
COMMUNITIES
23Section 02 | THE COMPANYFisher & Paykel Healthcare | ANNUAL REPORT 2023

OUR PROCESS
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
• Nurturing our culture
• 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.
24
13
24Section 02Ā|ĀTHE COMPANYFisher & Paykel Healthcare | ANNUAL REPORT 2023

MATERIALITY MATRIX: OUR PROCESS
6.06.57.07.58.08.59.09.510.0
0
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)
25Section 02 | THE COMPANYFisher & Paykel Healthcare | ANNUAL REPORT 2023

Scott St John
Chair and non-executive director
TERM OF OFFICE:
Appointed October 2015, last
re-elected 18 August 2021. Appointed
Chair on 21 August 2020.
Scott is director of ANZ New
Zealand Bank Limited, Mercury, the
NEXT Foundation and Fonterra
Cooperative Group. Scott was Chief
Executive Officer of First NZ Capital
from 2002 to 2017. He is a member of
Chartered Accountants Australia and
New Zealand, a fellow of the Institute of
Finance Professionals of New Zealand
and a Chartered Member of the Institute
of Directors.
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, last re-elected
24 August 2022.
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 40-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
Sir Michael Daniell
Non-executive director
TERM OF OFFICE:
Appointed November 2001, last
re-elected 18 August 2021.
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 director of Cochlear Limited,
Tait International Limited, the Medical
Research Commercialisation Fund, and
Chair of Te Tītoki Mataora – MedTech
Research Translator. Michael was named
a Knight Companion of the New Zealand
Order of Merit in June 2021.
Bachelor of Engineering (Hons)
COMMITTEE RESPONSIBILITIES:
Chair Quality, Safety & Regulatory
Committee.
Member People & Remuneration
Committee.
Pip Greenwood
Non-executive director
TERM OF OFFICE:
Appointed June 2017, last re-elected
21 August 2020.
Pip is chair of Westpac New Zealand,
chair-elect of The 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. 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.
Bachelor of Laws
COMMITTEE RESPONSIBILITIES:
Member Audit & Risk Committee.
Member People & Remuneration
Committee.
OUR BOARD
26Section 02 | THE COMPANYFisher & Paykel Healthcare | ANNUAL REPORT 2023

Dr Cather Simpson
Non-executive director
TERM OF OFFICE:
Appointed June 2022, elected 24 August
2022.
Cather is a Professor of Physics and
Chemical Sciences at the University of
Auckland and a Partner at Pacific Channel,
with expertise in lasers and photonics.
She is a Director of the International
Society for Optics & Photonics (SPIE)
and Founder/Director for Orbis
Diagnostics. In 2010, Dr Simpson founded
and directed The Photon Factory at the
University of Auckland. She is a founder
of three hard-tech start-ups, including
Engender Technologies, where she served
as Chief Science Officer from 2011 to 2021.
PhD Medical Sciences, Bachelor of Arts –
Interdisciplinary Studies
COMMITTEE RESPONSIBILITIES:
Member Quality, Safety & Regulatory
Committee.
Neville Mitchell
Non-executive director
TERM OF OFFICE:
Appointed November 2018, last
re-elected 24 August 2022.
Neville was Chief Financial Officer and
Company Secretary of Cochlear between
1995 and 2017. He is a non-executive
director of Sonic Healthcare, Sigma
Healthcare and Q’Biotics Group, and is
a former director of The Board of Tax,
South East Sydney Local Health District,
Osprey Medical and Sirtex. Previously,
he served on the New South Wales
Medical Devices Fund, was Chairman
of the Group of 100, and Chairman,
Standing Committee (Accounting and
Auditing), for the Australian Securities
and Investments Commission.
Bachelor of Commerce
COMMITTEE RESPONSIBILITIES:
Chair Audit & Risk Committee.
Member Quality, Safety & Regulatory
Committee.
Dr Lisa McIntyre
Non-executive director
TERM OF OFFICE:
Appointed October 2021, elected 24
August 2022.
Lisa is a director of HCF Group,
The University of Sydney, Studiosity,
and Nanosonics. In addition to her
current directorships, Lisa has previously
been a director of a range of health
entities, including those in healthcare
insurance, clinical service delivery and
medical research and innovation. Lisa
spent 20 years as a senior strategy
partner with LEK Consulting providing
advice to companies in North America,
Asia and Australia.
PhD Physical Chemistry, Bachelor of
Science – Biochemistry and Pure Maths
COMMITTEE RESPONSIBILITIES:
Chair People & Remuneration
Committee.
Member Audit & Risk Committee.
Donal O’Dwyer
Non-executive director
TERM OF OFFICE:
Appointed December 2012, last
re-elected 24 August 2022.
Donal is a director of nib Holdings
Limited. From 1996 to 2003, he was
with Cordis Cardiology (a division of
Johnson & Johnson), initially as its
president (Europe) and from 2000 to
2003 as its worldwide president. Prior
to joining Cordis, Donal worked for 12
years with Baxter Healthcare, rising from
plant manager in Ireland to president of
the Cardiovascular Group, Europe, now
Edwards Lifesciences.
Bachelor of Engineering, Master of
Business Administration
COMMITTEE RESPONSIBILITIES:
Member People & Remuneration
Committee.
Member Quality, Safety & Regulatory
Committee.
27Section 02 | THE COMPANYFisher & Paykel Healthcare | ANNUAL REPORT 2023

Lewis Gradon
Managing Director &
Chief Executive Officer
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
40-year tenure with Fisher &
Paykel Healthcare he has held
various engineering positions
overseeing the development
of our range of products as
well as the development of
our manufacturing, quality,
intellectual property, supply
chain and clinical research
functions.
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,
New Zealand.
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, New Zealand.
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.
Dr 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,
New Zealand, and holds a
doctorate in physics from the
same university.
OUR EXECUTIVE MANAGEMENT TEAM
28Section 02 | THE COMPANYFisher & Paykel Healthcare | ANNUAL REPORT 2023

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
Vice President – Supply Chain,
Facilities & Sustainability
Jonti was appointed Vice
President – Supply Chain,
Facilities & Sustainability in
April 2022, having served on
the Executive Management
team since 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. 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 Vice
President - 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. 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, United States.
Nicholas Fourie
Vice President – Information &
Communication Technology
Nicholas Fourie 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.
29Section 02 | THE COMPANYFisher & Paykel Healthcare | ANNUAL REPORT 2023

30Section 03Ā|ĀOPERATING SUSTAINABLYFisher & Paykel Healthcare | ANNUAL REPORT 2023

03
OPERATING
SUSTAINABLY
31Section 03 | OPERATING SUSTAINABLYFisher & Paykel Healthcare | ANNUAL REPORT 2023

PEOPLE
Creating an environment where
our people feel a deep connection
with our business is something we
strongly believe in. Our intention is
to have good people who contribute
the most they can over the long
term and to create a positive lasting
impact on society.
LEARNING AND DEVELOPMENT
Our approach to employee development has
three elements: experiential learning through
daily tasks and projects, coaching, and formal
training that includes e-learning, in-person
sessions and self-paced content.
This year there was a real focus on developing
our people in operations and designing our
approach to coaching.
For salaried workers in New Zealand, our
people undertook an average of 16 training
hours during the financial year.
32Section 03 | OPERATING SUSTAINABLYFisher & Paykel Healthcare | ANNUAL REPORT 2023

Workplace Education Programme
During the 2023 financial year we
sponsored a 12-week bespoke workplace
education programme to upskill employees
in New Zealand manufacturing.
The programme featured a mix of workshops
and in-person learning sessions on numeracy,
literacy, communications and continuous
improvement. Participants earned New Zealand
Qualifications Authority (NZQA) qualifications
in workplace communication, problem-solving
and writing in plain English.
Participants said they enjoyed being connected
with other areas of the business most, while
understanding and communicating with other
cultures better was their biggest learning.
Mentoring and skills development
This year we provided eight learners the
chance to complete their New Zealand
Certificate in Plastic Processing / Plastics
Engineering Level 3. This learning opportunity
was a way to consolidate skills and standards
in plastics across the business and show our
people another career pathway here. Like a
mini-apprenticeship, learners in the cohort
were assigned a mentor to help keep them
on track, explain concepts, and submit
assignments. The mentors also developed their
skills alongside mentees in their own specific
workshops. The successful cohort is now on
track to complete their Level 4 certificate.

Coaching
We believe that coaching is provided by
anyone, for everyone, in the moment to
help people reach their full potential, find
fulfilment and contribute to F&P over the
long term. These moments have the
potential to unlock solutions, embed
our culture and ways of working, and help
our people understand our purpose.
Throughout the financial year, a cross-
functional group of senior leaders defined
our coaching ethos and its purpose to
ensure we can embed and sustain it
globally. The next steps are to identify
priorities and continuing to develop our
coaching strategy.
Recipients of the Success in Plastics Processing and Plastics Engineering Level 3 Certificate: Deepak Sidhu, Param Singh, Paul Mikaele,
Ishan Dhand, Rajeneel Kumar, Longtime Ngau, Hinano Kauvai and Sam Bracey.
33Section 03 | OPERATING SUSTAINABLYFisher & Paykel Healthcare | ANNUAL REPORT 2023

PEOPLE – CONTINUED
Māori leadership programme graduates Nese Dhiman (Samoa), Leah Noble-Campbell (Ngāpuhi), Nikita Brown (Ngāpuhi) and Jordon
Maynard-Rippingale (Ngāti Kahungunu ki Wairarapa) who developed a mental health champions network as their business project.
Leadership training
F&P Mexico Women in Leadership
Empowerment, communication and leadership
were the focus areas of F&P Mexico’s Women
in Leadership Programme implemented this
year. Aimed at improving female representation
in senior roles in Mexico, the programme was
also designed to increase engagement and
wellbeing for women at work and at home.
Twelve women in a range of operational roles
took part as “first generation” participants.
A further 11 women have been identified for
the next programme.
Māori and Pasifika Leadership Development
A second cohort completed the Manaaki
Leadership Programme during the 2023
financial year, and the opportunity was
extended to people with Pasifika heritage as
well as Māori. The five-month course includes
wānanga (learning sessions) and one-on-one
coaching, culminating in the development of
projects that aim to solve a business issue.
With 18 participants, the second cohort
completed four continuous improvement
projects: a mental health champions network,
recruitment and development programmes
for operations employees, and a cultural hub.
A third cohort started the programme in
March 2023. Their projects will look at
increasing representation of Māori and Pasifika
candidates in recruitment and showcasing
Māori and Pasifika cultures.
Former participants cited a wish to understand
more about their cultural heritage as the top
reason for applying. They said their confidence
and psychological safety increased
considerably after participating.
34Section 03 | OPERATING SUSTAINABLYFisher & Paykel Healthcare | ANNUAL REPORT 2023

TALENT ATTRACTION AND RETENTION
Attracting talent
Hiring good people who will grow, develop
and contribute over the long-term continues
to be a top priority. We continue to apply a
continuous improvement lens to our large and
complex recruitment and selection process.
This year a multidisciplinary team in
New Zealand mapped out the hiring process
and identified improvements to ensure we
remain competitive and recruit the best
possible candidates in the fastest possible
time. As a result, we are implementing some
new recruiting methods and taking steps to
build our employer brand. Our programmes
for interns and graduates continue to be
highly successful. In the 2023 financial year
142 interns and 110 recent university
graduates joined the company in many
different business areas. We also launched
a new specialist programme for marketing
graduates to deepen their knowledge and
encourage meaningful connections with
our experienced marketing managers from
across the business.
Retaining talent
We believe that nurturing a culture where
teamwork, flexibility and diversity are valued
will create an environment that will retain our
people. We understand that people’s needs
and goals can be different, and we consider
retention activities specific to the needs of
our people and in line with our culture.
To recognise our people and their effort, Fisher
& Paykel Healthcare provides a discretionary
profit share scheme payable every six months.
During the 2023 financial year, the total
profit share pool amounted to $10 million
and a share was paid to employees who
met the qualifying criteria.
In New Zealand, Australia, the United
States and Canada, we also offer a
way for our people to be part-owners
in the company through employee
share schemes. Under these schemes,
employees may purchase shares in
the company at a discounted price.
Our cohort of New Zealand marketing graduates with some of our senior marketing leaders from across the business.
35Section 03 | OPERATING SUSTAINABLYFisher & Paykel Healthcare | ANNUAL REPORT 2023

PEOPLE – CONTINUED

DIVERSITY, EQUITY AND INCLUSION (DEI)
To achieve our company purpose, we nurture
a culture that is collaborative, open, diverse,
honest and inclusive. To develop this
environment, we are committed to embedding
Diversity, Equity and Inclusion in everything we
do. We think this approach is key to achieving
long-term, sustainable improvement.
We recognise that the work we do in the
diversity, equity and inclusion space requires
long-term thinking and innovative solutions to
complex challenges. We all have a part to play,
and we know our words and actions today will
impact future generations.
Our focus remains on embedding diversity,
equity and inclusion into everything we do,
as this is the key to sustainable change. We are
not afraid to do things differently and take a
considered approach to ensure our solutions
will address our unique diversity, equity and
inclusion opportunities and challenges.
Engagement from leaders within our business,
combined with employee-led projects and
external partnerships have resulted in some
key achievements this year.
Global Women Champions for Change
In the 2023 financial year, Fisher & Paykel
Healthcare became a support partner of
New Zealand’s Global Women organisation and
its Champions for Change group. Our Board
Chair, Scott St John, will participate alongside
over 80 senior business leaders who are
committed to achieving four drivers of
inclusive and diverse workplaces: increasing
gender diversity, increasing Māori and ethnic
diversity, leading inclusive cultures, and
influencing the outside world. We are looking
forward to listening and contributing to
conversations that will positively impact
future generations.
IDEA Council (Inclusion, Diversity,
Equity and Awareness Council)
The IDEA Council acts as trusted advisors to
the executive leadership team and Board and
ensure sustainable, equitable outcomes from
diversity and inclusion initiatives.
With the demands of the pandemic easing, the
council was able to concentrate on measures
to include employees from manufacturing and
operations teams to participate in DEI projects.
After an intensive awareness and recruitment
campaign that included focus groups across
three shifts, we welcomed three new members
from New Zealand manufacturing to ensure a
more representative voice in the council.
R&Dversity, an IDEA Council-led project aimed
at improving low female representation in
R&D at senior levels, completed three streams
of work – Meetings, Role Models and Model
Shops. The project has started to scope two
projects: Visibility of Role models, R&Dversity
and Women in Engineering (WiEng); and a
Pilot Model Shop Training programme, as well
as identifying five specific points to embed into
existing company projects.
FY23 DEI Objectives Progress
Complete the gender
representation diagnostic in
our sales regions and Mexico
manufacturing facilities (carried
over from FY22).
Complete
Identify initiatives to improve
gender representation in our global
locations where required (carried
over from FY22).
Complete
Complete implementation of
two initiatives to improve female
representation in the R&D function.
Complete
Identify and commence
implementation of two initiatives
to improve waged employee
progression.
Complete
One of our DEI focus groups in action at our New Zealand
campus.
36Section 03 | OPERATING SUSTAINABLYFisher & Paykel Healthcare | ANNUAL REPORT 2023

DEI Objectives – FY24
• Report our gender pay gap in
New Zealand
• Identify and commence implementation
of two initiatives to improve rainbow
inclusion
• Review the effectiveness of current
strategies to attract Māori and Pacific
people to our intern and graduate roles
• Complete implementation of one
gender representation initiative in each
international region (four sales regions
and our Mexico manufacturing facilities)
• Pilot embedding Diversity, Equity and
Inclusion into two key company projects
We continue to support the growth and
empowerment of our employee networks
and the Spectra (rainbow), Manaaki
(indigenous) and Women in Engineering
communities are a part of key business
projects to elevate inclusive solutions.
WiEng were finalists in the Inclusive Workplace category,
Diversity Works New Zealand Awards 2022.
Women in Engineering (WiEng)
Our Women in Engineering group exists to
support and empower a community of over
150 women in technical roles through personal
and professional growth opportunities and
offer mentoring to aspiring young engineers
at high school and university.
During the 2023 financial year mentoring
was a focus for the group. WiEng and our
learning and development team created a
three-part series of workshops that included
the basics of mentoring, how to prepare for
a good mentoring relationship, panels of
experienced people-leaders from our research
and development teams, and a speed
networking session.
This year the group were finalists in the
2022 Diversity Works New Zealand Awards
in the Inclusive Workplace category. We were
delighted to have this work recognised and
included amongst all the other finalists.
SUPPORTING WOMEN IN ENGINEERING
150+
WOMEN IN TECHNICAL ROLES SUPPORTED
WITH PERSONAL AND PROFESSIONAL
GROWTH OPPORTUNITIES
37Section 03 | OPERATING SUSTAINABLYFisher & Paykel Healthcare | ANNUAL REPORT 2023

PEOPLE – CONTINUED
Manaaki
‘Creating a workplace where it is wonderful
to be Māori’ is Manaaki’s vision, and the group
continues to grow and support people with
indigenous Māori heritage to develop their
leadership skills and cultural connection.
This year Manaaki’s activities included:
• Organising a range of activities to enable
employees to learn more about the
traditional customs of Matariki including
a special ‘Matariki at Dawn’ breakfast
celebration
• Supporting welcomes for the inaugural
NRSnet event, and Dr Karaitiana Taiuru
on behalf of F&P and the NZ Association
of Clinical Research
• Coaching leaders to improve their own
cultural intelligence
Spectra
During the financial year, Fisher & Paykel
Healthcare partnered with Pride Pledge, a
New Zealand-based organisation that supports
over 250 organisations to increase the visibility,
inclusion and safety for LGBTTQIA+ people in
their workplaces and communities. This
partnership is important for our rainbow
inclusion work.
Spectra, our group for queer and gender
diverse employees, was instrumental in
developing this partnership and completing
the Rainbow Inclusion Stocktake. The stocktake
is a self-evaluation tool and will help us to
understand where we are now and assist in
creating a strategic path forward.
Connecting with others through Pride Month
was a highlight for Spectra who organised a
range of events including the first ‘Rainbow
Awareness 101’ training by Pride Pledge, an ice
cream fundraiser for Outline, an all-ages mental
health organisation supporting the rainbow
community, and a quiz and performance.
Māori Language Week
Over 60 new Māori language learners
began their journey with renowned
author and teacher Hēmi Kelly in FY23.
Several learners noticed that some of the
145 meeting room signs with Māori
names were incorrect. To remedy this,
they worked with Manaaki to research
the whakapapa (history) of each meeting
room name, correct the spellings, and
improve the signage. Hēmi provided
voice coaching for the project team to
record audio soundbites for our online
building map. The project was launched
as part of Te Wiki o Te Reo (Māori
Language Week).
F&P Business Excellence Coach Dorcas Chan with teacher
Hēmi Kelly.
Celebrating our Manaaki graduates.
Our Spectra group in New Zealand during Pride Month.
38Section 03 | OPERATING SUSTAINABLYFisher & Paykel Healthcare | ANNUAL REPORT 2023

Hei Oranga Hinengaro – Mental Wellbeing
Champion Network
As a company built on care, we believe in
creating an environment that supports our
people’s health and wellbeing. By empowering
our people to help each other, we also believe
it will have a flow-on effect and benefit our
families and wider community.
A group from the Manaaki Leadership
Programme identified an opportunity to create
an employee wellbeing champion network to
act as another layer of support.
The Hei Oranga Hinengaro Mental Wellbeing
Champion Network is designed to be informal,
authentic and accessible. The purpose of the
network is to empower our people to help each
other by enabling conversations about mental
wellbeing and supporting them to find help.
A pilot for the network has been set up in the
New Zealand manufacturing area with 50
employees signed up for training.
Human Rights Distinction in Mexico
F&P Mexico received a Human Rights
Committed Company Distinction from the
Comisión Estatal De Los Derechos Humanos
Baja California (Baja California State Human
Rights Commission or CEDHBC) in March
2023. This recognition is a voluntary initiative
to promote sustainable development and
corporate citizenship through a commitment
to human rights and a platform for learning
and exchange of experiences.
Gaining this recognition was driven by desire
to constantly improve the quality of life for our
people in Mexico, building relationships based
on trust, respect and acceptance, and to create
safe spaces. There was also a commitment to
continuously improving our practices – the
CEDHBC recognition provides encouragement
to our teams to continue making an effort in
this area.
Ofelia Osiris Luna from our Mexico business receiving the
Human Rights Distinction Award from the Baja California State
Human Rights Commission.
Wellbeing
F&P Mexico offers a comprehensive
wellbeing service to employees with
programmes aimed at improving mental,
clinical and nutritional health. Recognising
mental health is an important part of overall
health, over 300 employees took up
psychology care services we made available,
while 10 employees successfully lost a
combined 122 kilograms through a weight
loss programme. There were also over 100
instances where chronic degenerative
diseases were brought under control.
39Section 03 | OPERATING SUSTAINABLYFisher & Paykel Healthcare | ANNUAL REPORT 2023

PEOPLE – CONTINUED
Global Connection
Globally we are now more mobile and value
spending time together face-to-face.
Area Managers Meeting in New Zealand
For the first time in almost four years, we
hosted our global Area and Territory Managers
at our New Zealand campus. Our offshore-
based teams, who support our distributors
worldwide, have expanded, and for some in the
team, it was their first-time meeting colleagues
face-to-face. It was a fantastic opportunity to
rekindle old and develop new connections
while experiencing our unique F&P culture.
“ The company has grown and now,
we can put a face to a name. There
were some very difficult moments
during the pandemic so being here
and being alive is a gift. My team
can have a real experience and
understand what it means to be
part of F&P, spending time here
is amazing.”
“ Connecting means we can network,
find out what’s going on around the
world and match best practices to
introduce into our regions. It also
helps us to improve communication
and drive the business.”
“ Being together face-to-face is
important for alignment and for
people to feel connected to the
company. I’m from New Zealand but
I’m only one person and our people
represent the F&P culture in different
ways. Having my team here means
they can see different representations
of the culture and find people they
align with.”
REBECCA ANNA LEE
Area Manager
Eastern Europe
JOHANNA HURTADO
Area Manager
Columbia RAC
ANDRES GARZON
Area Manager
Latin America
40Section 03 | OPERATING SUSTAINABLYFisher & Paykel Healthcare | ANNUAL REPORT 2023

North America reunites after three years
Employees in North America reunited in
California for their first national sales meeting
after almost three years of remote working.
The event felt extra special as new and old
friends across the business reconnected
through training days, a new mask launch,
Golden Kiwi Awards dinner, and a charity
run for a children’s hospital. For those who
joined during the pandemic it was the first
F&P sales meeting they had ever attended.
Winners of our Golden Kiwi staff awards at the 2022 National Sales Meeting for our United States sales team in California.
41Section 03 | OPERATING SUSTAINABLYFisher & Paykel Healthcare | ANNUAL REPORT 2023

By region
FY2022FY2023
RegionPermanentTemporaryPermanentTemporary
New Zealand3,4446333,51537
Mexico2,190881,68683
Rest of World1,173111,24815
Total6,8077326,449135
By gender
FY2022FY2023
GenderPermanentTemporaryPermanentTemporary
Women3,5785503,30884
Men3,2151813,10651
Gender diverse*4070
Not specified /
Prefer not to say
101280
Total6,8077326,449135
* Gender diverse is an umbrella term for a range of gender identities beyond the binary framework. We are working
to improve the quality of this data—new employees specify this but our work to update data for existing employees
is ongoing.
Full-time and part-time*
FY2022FY2023
GenderFull-timePart-timeFull-timePart-time
Women3,552263,27236
Men3,204113,08521
Gender diverse4070
Not specified /
Prefer not to say
91271
Total6,769386,39158
* Does not include New Zealand temporary employees (casual, fixed-term, temporary, temporary part-time and
contract temporary) due to the changing nature of their hours.
TOTAL PEOPLE
The tables below show our total numbers of people by headcount as at
31 March 2023.
PEOPLE BY THE NUMBERS
42Section 03 | OPERATING SUSTAINABLYFisher & Paykel Healthcare | ANNUAL REPORT 2023

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 2023.
FY2022FY2023
WomenMenGender diverseWomen %Men %Gender diverseWomenMenGender diverseWomen %Men %Gender diverse
Board35–37.5%62.5%–35–37.5%62.5%–
Senior executives
1
38–27.3%72.7%–38–27.3%72.7%–
Management (VP-1)
2
2047–29.9%70.1%–1745–27.4%72.6%–
All employees
3
3,5783,215452.6%47.3%0.05%3,3083,106751.5%48.4%0.1%
1 The term “senior executive” refers to the Chief Executive Officer, executives reporting directly to the Chief Executive Officer, and the General Counsel and Company Secretary who reports directly to the Board.
2 Management (VP-1): This includes senior managers who report into the Executive Management Team.
3 Temporary staff are not included in the above numbers.
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 2023.
FY2022FY2023
BoardSenior executives
1
All employees
2
BoardSenior executivesAll employees
Under 30 years old002,026001,650
30 – 50 years old083,735073,660
Over 50 years old831,046841,139
% Under 30 years old––29.8%––25.6%
% 30 – 50 years old–72.7%54.9%–63.6%56.7%
% Over 50 years old100%27.3%15.3%100%36.4%17.7%
COLLECTIVE BARGAINING AGREEMENTS
Of all permanent employees globally,
25% were covered by collective bargaining
agreements in the 2023 financial year.
Collective bargaining agreement
No collective bargaining agreement
25%
75%
1 The term “senior executive” refers to the Chief Executive Officer, executives reporting directly to the Chief Executive Officer, and the General Counsel
and Company Secretary who reports directly to the Board.
2 Temporary staff are not included in the above numbers.
43Section 03 | OPERATING SUSTAINABLYFisher & Paykel Healthcare | ANNUAL REPORT 2023

PEOPLE BY THE NUMBERS – CONTINUED
HIRE RATES
The tables below show our hire rates for the financial year ended
31 March 2023. Hire rate is the number of permanent employees
hired divided by headcount in each region or category.
By region
FY2022FY2023
RegionNew employeesHire rateNew employeesHire rate
New Zealand83739%53015%
Mexico71719%32719%
Rest of World818%25621%
Total1,63524%1,11317%
By gender
FY2022FY2023
GenderNew employeesHire rateNew employeesHire rate
Women93926%56117%
Men68921%52617%
Gender diverse1–3–
Not specified /
Prefer not to say
6–23–
Total1,63524%1,11317%
By age group
FY2022FY2023
Age groupNew employeesHire rateNew employeesHire rate
Under 30 years old65319%52031%
30 – 50 years old73534%52214%
Over 50 years old24721%716%
Total1,63524%1,11317%
44Section 03 | OPERATING SUSTAINABLYFisher & Paykel Healthcare | ANNUAL REPORT 2023

EMPLOYEE TURNOVER
The tables below show employee turnover rates for the financial year
ended 31 March 2023.
By region
FY2022FY2023
Region
Number of
leaversTurnover rate
Number of
leaversTurnover rate
New Zealand34610%44813%
Mexico*61728%74844%
Rest of World17815%18815%
Total1,14117%1,38421%
* Turnover in Mexico was higher in the first half of FY2023 due to a decrease in production volumes and changes to
working patterns.
By gender
FY2022FY2023
Gender
Number of
leaversTurnover rate
Number of
leaversTurnover rate
Female59516%77824%
Male54517%60119%
Gender diverse––––
Not specified /
Prefer not to say
1–5–
Total1,14117%1,38421%
By age group
FY2022FY2023
Age group
Number of
leaversTurnover rate
Number of
leaversTurnover rate
Under 30 years old53225%61537%
30 – 50 years old52614%67719%
Over 50 years old838%928%
Total1,14117%1,38421%
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 2023.
FY2022FY2023
New Zealand (salaried and waged)99.7%99.2%
Outside of New Zealand (salaried only)96.0%96.6%
Total98.5%98.4%
45Section 03 | OPERATING SUSTAINABLYFisher & Paykel Healthcare | ANNUAL REPORT 2023

COMMUNITY
FISHER & PAYKEL HEALTHCARE
FOUNDATION
The Fisher & Paykel Foundation,
a registered charitable entity, was
established in March 2021. The
Foundation’s purpose is supporting
healthier communities and it aims
to achieve that by focusing on three
key areas – health, education and
environment – supporting people
and organisations that help those
who are underserved and
underrepresented.
FIRST FUNDING ROUND
The Foundation is committed to providing its
partners with the security and sustainability
they need to reach their full potential. During
the 2023 financial year, the Foundation
provided funding of $924,000 to organisations
working in local communities. Fisher & Paykel
Healthcare employees nominated local groups
whom they knew were doing excellent work
in the community and additional applications
were accepted through the Foundation
website. Foundation Lead Neerali Parbhu
then met with leaders of 32 organisations
face-to-face to understand what they do in the
community first-hand and evaluate their needs.
SELECTED PARTNERS
Bluespur Charitable Trust
Supporting the delivery of the Pacific
Settlement Service aimed at creating
successful newcomers from the Pacific Islands
that contribute positively to the wellbeing of
Aotearoa New Zealand.
Cure Kids
Supporting the pilot Asthma Project aimed
at reducing childhood mortality resulting from
severe asthma in Māori and Pasifika children.
Fibre Fale
Supporting initiatives in South Auckland aimed
at enabling digital equity for Pasifika people and
encouragement to enter the digital tech industry.
First Foundation
Providing scholarships and internships to
bright young people whose circumstances
make it harder to attend university.
Garden to Table
Supporting the development of cultural
resources for schools to improve the
engagement of children with their
environment, enabling facilitators to spend
more time in South Auckland schools, and
providing cultural professional development.
Kidz First/Ko Awatea
Supporting Kidz First’s Māori Child Health
Research Collaborative that runs a broad range
of projects to address inequities including
training for Māori doctors, implicit bias, ADHD
treatment and a new model of care in the
community: lungs4life.
Supporting Ko Awatea to provide research
funding for two projects: one that addresses
care pathways for injured young people in
South Auckland, and another that explores
new techniques to understand diabetic
kidney disease.
Kiwibots
Supporting Kiwibots’ national robotics
competitions and providing robotics kits to
enable more females and South Auckland
schools with high Māori and Pasifika
representation to participate.
Kura Cares Charity
Supporting the Whānau Hotaka Programme
for families in Papakura, South Auckland
which provides financial literacy and
mentoring workshops to help families
out of the poverty cycle.
Pūhoro STEMM Academy
Supporting rangatahi Māori (young people)
who are transitioning between tertiary STEMM
(science, technology, engineering, maths and
mātauranga Māori) studies to employment.
Pūhoro also explores the barriers for rangatahi
in South Auckland to remain in education.
University of Auckland – Faculty of Engineering
Supporting the faculty’s Māori and Pacific
Pathways and Women in Engineering
Programmes, aimed at increasing the
representation of Māori, Pasifika and female
students choosing to study engineering.
46Section 03 | OPERATING SUSTAINABLYFisher & Paykel Healthcare | ANNUAL REPORT 2023

In the coming year, the Foundation
will begin exploring opportunities to
partner with groups who are making
a difference in the Tijuana
community in the areas of health,
education and the environment.
PUTTING ‘KIDZ FIRST’ FOR CHRISTMAS
For some families, Christmas may be spent
at hospital – especially if a child or children
are chronically ill. The combined power of
the Foundation and Fisher & Paykel Healthcare
employees was put into full effect for children
and their families who are under the care
WELCOME TO NEW FOUNDATION CHAIR
– TONI MOYES
The Foundation welcomed Toni Moyes
to the position of Chair, taking over from
Lindsay Gillanders who retired as a trustee in
February 2023.
Toni is an independent trustee of the
Foundation and the Chief Commercial and
Financial Officer of wealth development
platform Sharesies. Toni has represented
New Zealand on the APEC Business Advisory
Council and co-chaired the Councils’ Digital
Working Group, co-founded a peer mentoring
group for women in leadership, has been part
of the selection team for the Edmund Hillary
Fellowship, and is a member of the college
of assessors for government scientific
research funding.
The Foundation is grateful to Lindsay for
sharing his time and experience to help set
up this important organisation.
TONI MOYES
New Foundation Chair
of Kidz First Children’s Hospital in
South Auckland.
Fisher & Paykel Healthcare employees raised
just over $10,000 to provide food boxes to
40 Kidz First families, while the Foundation
donated $15,000 to provide a further 60
food boxes.
The Foundation also contributed $5,000
for a special event for 250 families hosted
by the Middlemore Foundation and BBM
(Buttabean Motivation) where they received
food boxes and gifts. A 25-strong team of
employees from Fisher & Paykel Healthcare
also volunteered their time to this event,
hosting the free sausage stall and gift
tables all day.
Foundation and F&P team members supporting the Kidz First Christmas food box drive.
47Section 03 | OPERATING SUSTAINABLYFisher & Paykel Healthcare | ANNUAL REPORT 2023

COMMUNITY – CONTINUED
FIRST FOUNDATION SCHOLARSHIPS BEGIN
First Foundation supports bright young Kiwis
whose circumstances make it difficult to attend
university – giving them financial assistance,
paid work experience and a dedicated mentor.
This year the Foundation provided scholarships
to two South Auckland students: Tevita
Bloomfield from De La Salle College and Helen
Thai from Aorere College who both aspire to
work in the medical field after university. They
spent three weeks at Fisher & Paykel
Healthcare’s Auckland campus, spending time
with a variety of mentors and teams, gaining
exposure to many areas of the business. They
left inspired by the range of work and areas of
healthcare they could work in one day.
FLOODS AND CYCLONE RELIEF
In January and February 2023, many
communities in New Zealand were hit hard
by flooding and Cyclone Gabrielle. The
Foundation moved quickly to provide
$10,000 to BBM to support the immediate
needs of families in South Auckland.
The Foundation continued to look for ways
to make a long-term impact to restore
livelihoods and provided $90,000 to Habitat
for Humanity to assist with its home-repair
schemes for those affected by flooding and
cyclone damage in South Auckland and in
Wairoa, Hawke’s Bay.
Foundation Trustees
MARCUS DRILLER
VP Corporate,
Fisher & Paykel Healthcare
JAMES TUCK
GM International Sales Operations,
Fisher & Paykel Healthcare
DR DAVID GALLER
Independent Trustee
KIRI HENARE
GM HR NZ,
Fisher & Paykel Healthcare
TONI MOYES
Independent Chair
KEVIN PEARSON
GM Product Group Operations,
Fisher & Paykel Healthcare
Our First Foundation students: Helen Thai from Aorere College and
Tevita Bloomfield from De La Salle College.
48Section 03 | OPERATING SUSTAINABLYFisher & Paykel Healthcare | ANNUAL REPORT 2023

DEVELOPING PARTNERSHIPS WITH
TĀNGATA WHENUA (MĀORI)
Our intention is to create a positive lasting
impact on society and the environment, and
we believe this is in line with the aspirations
and values of tāngata whenua (New Zealand’s
indigenous people).
We acknowledge the unique perspective of
tāngata whenua and the spiritual, ancestral,
cultural, customary and historical knowledge
and expertise built over time has the potential
to bring significant benefits to all of New
Zealand when aligned with commercial
enterprise in trusted, long-term relationships.
Developing the East Tāmaki campus has given
us an opportunity to build partnerships with
tāngata whenua over the past twenty years.
Throughout the year, special attention has
been paid in the design of our fifth facility to
ensure that the area’s rich cultural history is
reflected throughout the building and its
surrounding areas. A heritage walkway, with
replanted native trees and cultural artforms,
has been co-developed with local iwi Ngāi Tai
Ki Tāmaki, as well as storytelling in interior
design and signage.
For our planned future campus in Karaka,
community involvement and engagement will
form a significant part of the early stages of
the development, and we are excited to end
the financial year by beginning new partnership
journeys with local iwi in that area: Ngāti
Tamaoho and Ngāti Te Ata. A working
group of F&P employees (including those
with Māori heritage), who deeply understand
our company’s ‘DNA’ and our long-term
aspirations, are leading work in this space,
each of whom are developing their cultural
capability and understanding with external
mentoring and guidance.
GLOBAL INITIATIVES
In addition to the Foundation-led initiatives in
New Zealand, our teams across our global sites
select and sponsor community initiatives which
connect to our purpose. In North America,
Europe and Australia, our people have again
participated in a range of fundraising activities
and made donations to support charitable
organisations. This included raising money for
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 2022.
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.
49Section 03 | OPERATING SUSTAINABLYFisher & Paykel Healthcare | ANNUAL REPORT 2023

ENVIRONMENT
Our environment refers to the
natural resources required to
design, produce, distribute and
use products and therapies.
Our intention is to create a
positive lasting impact on society
and the environment.
We recognise we have a responsibility to
care for the natural environment while we
pursue our business goals. Climate change
is also 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, like in all areas of our business.
Our approach is to operate our business
efficiently and responsibly while improving
care and outcomes for patients. We measure
key environmental metrics, including carbon
emissions, 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
ecodesign, sustainable packaging, biobased
and circular materials, and environmental
life cycle assessment. We believe that by
investing in these initiatives, we can be more
innovative and successful in the long term.
50Section 03 | OPERATING SUSTAINABLYFisher & Paykel Healthcare | ANNUAL REPORT 2023

CDP SCORES
1
Providing transparent sustainability disclosures is important to Fisher & Paykel Healthcare. We have been submitting to CDP
(formerly known as the Carbon Disclosure Project) since 2010 – this framework is considered by many to be the leading global
standard in environmental disclosures.
CDP ProgramFY21FY22FY23
Climate A-BA-
Supplier engagement
2
A-AB
WaterBBC
ForestsCC C
1 The required level of disclosure for CDP again increased for the 2023 financial year. We continue to mature our approach in the above areas and our work to improve our performance is ongoing.
Since the FY23 scores were awarded, we have publicly disclosed our procedures on Water and Forests on the Corporate Governance Policies section of our website.
2 Supplier Engagement relates to the CDP Climate Program.
KEY GREENHOUSE GAS (GHG) EMISSIONS
GHG emissions (tonnes CO
2
e)
1
FY21FY22FY23Change (%)
Total: Scope 1 & location-based Scope 216,00715,67116,8167%
– Scope 11,4651,7772,28729%
– Scope 2 (location-based)
2
14,54213,89414,5295%
Total: Scope 3718,991457,112328,313-28%
Total: Scope 1, location-based Scope 2 & Scope 3 emissions (tonnes CO
2
e)734,998472,783345,129-27%
1 GHG emissions have been measured in accordance with ISO 14064-1:2018 and consolidated using the operational control approach. Emissions factors and Global Warming Potentials (GWP) are provided by the Toitū
carbonreduce Programme.
2 The Greenhouse Gas Protocol defines location-based emissions as a method that calculates emissions from electricity use based on the average emission intensity of the power grid used in the location where the company
operates. Previously only market-based GHG emissions were disclosed (see data table and definitions below). Location-based emissions are now disclosed in alignment with NZ CS1 (from the External Reporting Board’s
New Zealand Climate Standards).
Market-based
3
GHG emissions (tonnes CO
2
e)FY21
4
FY22
4
FY23Change (%)
Scope 2 (market based)11,04510,34411,1057%
Total: Scope 1 & market-based Scope 212,51512,08613,39211%
3 The Greenhouse Gas Protocol defines market-based emissions as a method that calculates emissions from electricity purchased by the company (which accounts for renewable energy certificates).
4 We have restated our FY2021 and FY2022 Scope 2 emissions to account for the Ministry for the Environment’s (New Zealand) latest Measuring Emissions Guide (16 August 2022) which includes revised electricity emissions factors.
51Section 03 | OPERATING SUSTAINABLYFisher & Paykel Healthcare | ANNUAL REPORT 2023

ENVIRONMENT – CONTINUED
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 achieve a 67 per cent
reduction in our Scope 1 and 2 emissions by 2034 from a 2019
baseline. During the 2023 financial year, we confirmed that 22
suppliers have also set Science Based Targets or equivalent targets
for carbon reduction.
Looking further ahead, we are developing a carbon reduction
long-term plan for our global business, which identifies a pathway
to net zero CO
2
e by 2050. This plan is currently in draft and
is undergoing extensive review with both Executive Management
and the Board. We wish to make sure it is fit-for-purpose and apply
the necessary rigour and analysis of our scenarios, including
those that relate to the use-phase of our product lifecycle before
we release this externally.
Scope 1 and 2 carbon targets in tonnes of CO
2
equivalent
FY2019 BaselineFY2024 TargetFY2029 TargetFY2034 Target
Direct emissions – fuels, refrigerants, electricity and heat 11,1158,8466,4944,143
OTHER KEY ENVIRONMENTAL METRICS
TopicFY21FY22FY23
Water usage (cubic metres)134,900184,171133,517
Landfill waste diverted (cubic metres)1,6302,0351,727
NZ recycling efficiency (percentage of waste diverted from landfill)62%68%62%
Global recycling efficiency (percentage of waste diverted from landfill)29%52%54%
Reasonable assurance over Scope 1 and 2 emissions and a review of Scope 3 emissions (with reasonable assurance/validation provided
for certain Scope 3 categories) has been performed by Toitū Envirocare. A copy of the Toitū Envirocare inventory report is available on the
sustainability section of our website.
52Section 03 | OPERATING SUSTAINABLYFisher & Paykel Healthcare | ANNUAL REPORT 2023

CARBON EMISSIONS
Our carbon audit for the 2023 financial
year shows a carbon footprint of 345,129 of
CO
2
e, representing a 27 per cent reduction
on the prior financial year. Both Scope 1 and
2 emissions increased during the year, while
our Scope 3 emissions decreased due to a
reduction of use-phase emissions as hospital
hardware sales were lower than the prior
year which included a significant COVID-19-
related impact.
Scope 1 and 2
Scope 1 emissions were elevated in the 2023
financial year compared to 2022 amid a heavier
travel footprint for our sales teams with
COVID-19 travel restrictions continuing to ease
and hospital access improving. As has been
made clear throughout this report, connecting
with customers and clinicians after limited time
spent face-to-face during the pandemic has
been a priority through the year. Scope 2
emissions saw a slight increase on the back of
a higher proportion of production occurring in
Mexico compared to prior years, coupled with
an expanded sales team and less time spent
working from home. The installation of the first
phase of our Mexico solar array has partially
mitigated this increase. In the long term, we
remain committed to decoupling carbon
emissions from production levels. We have
been continuing to pilot an internal carbon
price during the 2023 financial year to factor
carbon impact into our business decisions.
Scope 3
Scope 3 emissions declined year-on-year,
largely driven by a reduction in use-phase
emissions amid lower hospital hardware
sales compared to prior years. Airfreight as
a proportion of our overall freight was also
reduced compared to the 2022 financial year.
We remain committed to educating our
suppliers about their responsibility to
reduce carbon emissions and to set their
own Science Based Targets. As mentioned
earlier, we confirmed during the 2023 financial
year that 22 suppliers have also set Science
Based Targets or equivalent targets for
carbon reduction.
CARBON FOOTPRINT 2023
345,129 of CO
2
e
27%
ON THE PRIOR FINANCIAL YEAR
53Section 03 | OPERATING SUSTAINABLYFisher & Paykel Healthcare | ANNUAL REPORT 2023

ENVIRONMENT – CONTINUED
WATER USAGE
We have established an absolute water
reduction target of 2 per cent per year.
We exceeded this target during the 2023
financial year, achieving a 28 per cent
reduction. The year’s improvement was
largely a result of reduced shift patterns at
our Mexico facilities and an improvement in
the accuracy of data we source from our
global sales offices. The water re-use plant
(detailed later in this section) was operational
for the final month of the financial year,
providing a slight additional improvement.
The plant is currently delivering a 50 per cent
reduction in water use for our second building
and we anticipate this will climb to 80 per cent
in the coming years. Of our total water use,
New Zealand accounts for 63 per cent,
Mexico accounts for 32 per cent and our
global sales offices account for 5 per cent.
OUR NEW WATER RE-USE
PLANT IN MEXICO
Our facilities in Tijuana are situated in a
water-scarce area, relying on water being
piped in from a neighbouring state, which
in turn relies on the stressed Colorado River
basin catchment. In a telling display of the
effects of climate change, the river no
longer regularly reaches the Gulf of Mexico.
Our team identified a solution to treat and
re-use water that is deployed for cooling
systems, cafeterias, bathrooms and other
sanitation uses. Our team of engineers
developed a tertiary treatment system that
degrades and filters waste and biosolids,
complete with a drying and
vermicomposting bed.
The treatment plant became operational
in March 2023 and is currently saving
approximately 50 per cent of water for our
second building. Our next goal is to lift this
to an 80 per cent reduction. The plant has
the capacity to process enough water to fill
an Olympic swimming pool in three days.
This is aligned with Proyecto Morado (Project
Purple), a plan by the Tijuana government
to promote the re-use of treated water in
irrigation, manufacturing and construction.
It is another important step in making our
site more climate-resilient and sustainable.
The project is another positive addition to
our second Tijuana campus following the
completion the first phase of our solar
installation project which saw 1,300 solar
panels installed on the roof of our second
building. Once the entire array is operational,
we expect this will fulfil 40 per cent of the
overall site’s electricity requirements.
Our Mexico team celebrates the completion of our water re-use plant in March 2023.
54Section 03 | OPERATING SUSTAINABLYFisher & Paykel Healthcare | ANNUAL REPORT 2023

GREEN TEAM
Our employee-led Green Team now
includes more than 500 people promoting
environmental sustainability on our East
Tāmaki campus and in the community. Our
annual Sustainability Week in November was
again a highlight this past year, featuring a
bioeconomies speaker event, a Green Awards
celebration with a new Ecodesign Trophy
awarded, and a sustainable transport
showcase providing information on cycling,
electric vehicles and public transport options.
Approximately 150 team members participated
in the Aotearoa Bike Challenge to promote
sustainable commuting and the Green Team
also co-ordinated tree plantings and estuary
clean ups as part of Keep New Zealand
Beautiful Clean Up Week. Further afield,
highlights included several events for
Sustainability Week in the UK, and a large
turnout for a beach clean-up event run by
our Mexico team.
ISCC PLUS CERTIFICATION
In October 2021 Fisher & Paykel Healthcare
became International Sustainability and
Carbon Certification (ISCC) PLUS certified
in New Zealand for the first time. ISCC
provides certification solutions for supply
chain traceability and sustainability. ISCC
PLUS is a sustainability certification that allows
us to source and trial a range of sustainable
materials (bio-based or bio-circular) that are
ISCC PLUS certified. In May 2023, the first
components using this certification were
released to market as part of our SleepStyle
product. This is an important milestone for
our Ecodesign program.
Taking care of our New Zealand campus – some of our
New Zealand team hard at work during a tree-planting day.
Our Mexico team with a strong turnout to our beach clean-up
event in September 2022.
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 member
of the Sustainable Business Network, which
is New Zealand’s largest and longest-
standing sustainable business organisation.
The network describes itself as a social
enterprise, a community and a movement,
designed to enable change in the areas of
climate, waste and nature.
Our Board Chair Scott St John is a member
of the steering committee for Chapter Zero
New Zealand, a newly formed climate
governance group hosted by the Institute
of Directors. This is a chapter of the global
Climate Governance Initiative (CGI) which was
established to support the World Economic
Forum’s Climate Governance Principles for
boards of directors – the intent is to provide
directors with climate awareness and skills,
and bring climate considerations to the fore
in boards’ decision-making processes.
55Section 03 | OPERATING SUSTAINABLYFisher & Paykel Healthcare | ANNUAL REPORT 2023

SUPPLIERS
Our firm belief in doing the right
thing and creating a lasting
positive impact goes beyond our
commitment to patients – it also
applies to our supply chain.
We are focused on building trusted
long-term relationships with our suppliers
across the globe to maximise opportunities for
companies and communities to thrive, all while
promoting safe working environments and
sustainable outcomes.
As part of our responsible sourcing efforts, we
select and collaborate with suppliers who align
with our values, provide education and support
on relevant standards, and enable our people
to speak up in cases of non-compliance. This is
all anchored in our view that corporate social
responsibility and sustainability are inextricably
linked to the way we do business.
SUPPLIER CODE OF CONDUCT
We are committed to building a supply chain
aligned with our approach to corporate social
responsibility and environmental sustainability.
We use an integrated enterprise resource
planning system and a strong quality
management system to ensure that our supply
chain is transparent and coordinated across
our wider supply chain network.
Our Supplier Code of Conduct reflects our
values and our expectations for the conduct of
all suppliers, contractors and consultants, and
their affiliates, who provide goods or services
to F&P. We find business relationships are more
productive and effective when they are built
on trust, mutual respect, and common values.
As such, F&P seeks relationships with suppliers
who share a common commitment to:
1. Comply with all laws and regulations.
2. Act ethically and with integrity.
3. Respect human and employee rights.
4. Incorporate quality business processes
within day-to-day operations.
5. Promote and maintain a health and safety
culture.
6. Design for sustainability.
7. Monitor and minimise any negative impacts
on the environment.
8. Have systems in place to ensure business
continuity, continuous improvement and
protection of intellectual property.
While materials are procured from all over
the globe, a large portion of the externally
procured materials originate from suppliers
in Asia and North America. To support our
suppliers and ensure transparency, our
local teams personally interact with and
visit suppliers’ operations where possible.
We are focused on building trusted long-term
relationships with suppliers across the
globe to maximise opportunities for
companies and communities to thrive, all
while promoting safe working environments
and sustainable outcomes.
Our full Supplier Code of Conduct, updated
in September 2022, is available on our website.
SUSTAINABLE PROCUREMENT
The raw materials and components we use
to manufacture our products come from
a network of suppliers around the globe.
Operating in a sustainable way depends not
only on what we do, but on the activities of
our supply chain. For that reason, we seek to
purchase goods and services from suppliers
that minimise negative impacts and increase
positive outcomes through sustainable and
ethical business practices. Our practices are
based on and aligned with ISO 20400 for
Sustainable Procurement.
56Section 03 | OPERATING SUSTAINABLYFisher & Paykel Healthcare | ANNUAL REPORT 2023

2,000+20
+
Tier 1 suppliers to
New Zealand and Mexico
manufacturing sites
countries
4
continentsBased in
OVERVIEW OF OUR SUPPLY CHAIN
Canada
United Kingdom
Switzerland
IndiaHong Kong
Malaysia
New Zealand
USA
Mexico
Dominican Republic
Germany
Sweden
Austria
Italy
Turkey
Thailand
Singapore
Taiwan
Japan
Australia
China
Costa Rica
Tier 1 : A direct supplier to
Fisher & Paykel Healthcare
Tier 2 : A supplier to one or
our suppliers (sub-supplier)
Tier 3 : A sub-sub supplier
1
2
3
57Section 03 | OPERATING SUSTAINABLYFisher & Paykel Healthcare | ANNUAL REPORT 2023

SUPPLIERS – CONTINUED
ERADICATING MODERN SLAVERY
As part of our commitment to do the right
thing, we recognise that we have a role to
play in guarding against and eradicating
modern slavery. We have processes in place
that identify and address modern slavery
risks within our supply chain and aid our
procurement decisions.
These processes include our Code of Conduct
and our Supplier Code of Conduct, and we
have evolved our procedures over the 2023
financial year to include specific modern
slavery observations in our supplier site visits.
We have piloted the methodology for
undertaking these observations with a small
number of suppliers. For the 2024 financial
year, this process will be carried out across
a broader group.
We fully support the principles in the United
Nations Universal Declaration of Human Rights
and the International Labour Organisation
Declaration on Fundamental Principles and
Rights at Work, including non-discrimination,
freedom of association and collective
bargaining, and freedom from forced and
child labour.
Modern slavery risks in our operations
and supply chains
Fisher & Paykel Healthcare Group has assessed
the key modern slavery risks in its operations
and supply chains within New Zealand and
internationally. As a large manufacturer, we
recognise that our risk is likely moderate in
respect of potential modern slavery risks. To
determine where the biggest risk of potential
modern slavery lies within our supply chain
for our New Zealand and Mexico operations,
we have undertaken a due diligence exercise.
We evaluated direct suppliers that provide
products or services that are used in Fisher &
Paykel Healthcare’s medical devices, or in the
manufacturing of such devices. As part of this
exercise, we have identified through a
heat-map the geographical regions where our
suppliers are located, cross-referencing the
prevalence of modern slavery in those regions
based on the 2018 Global Slavery Index.
While we source globally, a large portion of
the externally procured products and services
for our New Zealand and Mexico operations
originate from suppliers in Asia and North
America, with highest-risk categories being
electronics and textiles. Through this
heat-mapping exercise, we have been able to
undertake a sustainable risk-based approach
by focusing first on the geographical areas of
potential highest risk. After making progress on
the highest-risk areas in the 2023 financial year,
we have begun looking at other key risk areas
such as Mexico, where we have recently
appointed a Sustainable Procurement Lead.
To support our suppliers in these regions and
to ensure transparency, our local teams
personally interact with and visit our suppliers
where possible to understand and evaluate
their operations.
OUR APPROACH TO ADDRESSING MODERN
SLAVERY RISKS
Our processes to identify and address modern
slavery risks within our supply chain and aid in
our procurement decisions include our Code
of Conduct and Supplier Code of Conduct.
Our supplier assessment survey includes the
requirement for specific modern slavery
indicators to be monitored in our supplier site
visits. We acknowledge that the highest-risk
factors which could potentially link to modern
slavery violations within our supply chain and
operations relate to the use of forced labour,
with particular risks for migrant workers.
Specifically, use of forced labour covers
potential risks for deceptive recruitment of
labour, including retention of passports and
other identity documents, or poor working
conditions and pay.
We have continued surveying suppliers to
understand their risk profile and have hired
a sustainable procurement specialist to be
based in Asia (as the area we have identified
of having highest potential modern slavery
risk in our supply chains). We have also
contracted a third party to assist with a
deep-dive assessment on environmental and
social responsibility impacts of our supply
chain. A pilot program of this assessment with
a select group of suppliers is set to conclude
within the first half of the 2024 financial year.
58Section 03 | OPERATING SUSTAINABLYFisher & Paykel Healthcare | ANNUAL REPORT 2023

Our suppliers must confirm their commitment
to our Supplier Code of Conduct, which was
last updated in September 2022. We have a
supplier assessment form on our supplier
onboarding portal, which has to be completed
by suppliers whose goods or services are used
to manufacture our products or have the
potential to impact the safety of our people or
products. From the information requested on
the supplier assessment form, we are able to
assess the supplier and (where applicable) their
subcontractors’ history and commitment to fair,
ethical and legal employment practices and the
eradication of child, forced or compulsory
labour in the supply chain and operations.
Fisher & Paykel Healthcare completes a
global sustainability risk assessment annually
based on our knowledge and understanding
of the sustainability impacts relating to the
materials we source, our supply chain and
sourcing countries. We have developed a
sustainable procurement framework aligned
with ISO 20400 standards (Sustainable
Procurement) to provide structure around
identifying, monitoring and addressing risk,
along with our approach to building a
culture of awareness and knowledge on social
and environmental topics relevant to our
supply chain.
We established an Environmental and Social
Responsibility Governance group in 2022. The
purpose of the governance group is to oversee
a range of workstreams and initiatives relating
to supply chain, sustainable procurement and
modern slavery. The Environmental and Social
Responsibility Governance group is comprised
of senior managers from across our business,
to ensure we have engagement from a range of
different research and development, sales and
corporate units. The Governance group has
established an environmental and social
responsibility programme based on gaps
analysis and prioritisation within our operations
and supply chain, including modern slavery and
sustainable procurement.
FY23 – RISK OF MODERN SLAVERY BY GEOGRAPHIC REGION
WHERE F&P SUPPLIERS ARE LOCATED
North America
Europe
Asia
Oceania
Low PrevalenceHigh Prevalence
Source: 2018 Global Slavery Index
59Section 03 | OPERATING SUSTAINABLYFisher & Paykel Healthcare | ANNUAL REPORT 2023

SUPPLIERS – CONTINUED
OUR POLICIES FOCUSED ON ADDRESSING
MODERN SLAVERY RISKS
We are committed to building a supply
chain aligned with our approach to social
responsibility and sustainability, as set out in
our policies. We use an integrated enterprise
resource planning system and a strong quality
management system to ensure that our supply
chain is transparent and coordinated across
our wider supply chain network. We have a
number of processes that address modern
slavery risks, and which drive our purchasing
decisions to consider a holistic approach
across economic, environmental and social
aspects. These processes include:
Codes of Conduct
We expect our directors, employees,
executives and contractors to maintain
high ethical standards. Our Company
Code of Conduct applies to all employees,
executives and contractors within the
Fisher & Paykel Healthcare Group globally.
We have also created a separate Code of
Conduct for Directors.
The Codes cover a range of areas relevant
to legal and ethical behaviour, including but
not limited to, competing fairly, health and
safety, working with customers and suppliers,
sanctions compliance, and combatting
bribery and corruption. The Codes have been
translated into a number of different languages
for our global offices. Training on our Code of
Conduct is undertaken by employees globally
and is part of our induction process for new
employees. New directors are provided a copy
of the Director’s Code of Conduct during their
induction training.
We implemented our Speak Up Procedure
globally in October 2021. This whistle-blowing/
protected disclosures procedure sets out how
actual or suspected breaches of the Codes of
Conduct, or any potentially unethical or illegal
behaviour, can be reported without fear of
retaliation or harassment. As part of the Speak
Up Procedure, we have engaged an
independent third party to provide a service so
reports can be made to them if people choose
to do so. The third-party service provider then
provides relevant details back to F&P so that
appropriate action can be taken. For FY23,
we expanded this service so that it can be used
by our suppliers and third-party contractors
to report suspected or actual modern slavery
violations. This process supports F&P by
providing greater clarity across our supply
chain and ensures there can be disclosure by
suppliers without reprisals.
Supplier Code of Conduct
Our Supplier Code of Conduct reflects our
values and expectations for all suppliers,
contractors and consultants who provide
goods or services to Fisher & Paykel
Healthcare. The Supplier Code of Conduct
sets out minimum standards expected of
suppliers. Our Supplier Code of Conduct sets
out the requirements for suppliers to treat
people with dignity and respect, including
but not limited to:
• not hiring or using forced, compulsory
and/ or child labour;
• promoting awareness around the
importance of a diverse and inclusive
workforce;
• having systems in place for the review of
internal policies and practices in order to
have an inclusive approach; and
• respecting employee rights to freedom
of associated and collective bargaining.
Should a supplier fail to comply with the
Supplier Code of Conduct, as a first step we
would work with the supplier to identify and
mitigate risks to support them to change
their behaviour and general practices
addressing modern slavery risks. Continued
or repeated breaches of the Code may result
in termination of the arrangements between
us. In addition to the Supplier Code of
Conduct, our Australian entity, Fisher & Paykel
Healthcare Pty. Ltd, also has additional
onboarding processes for suppliers in
respect of finance, quality and regulatory.
60Section 03 | OPERATING SUSTAINABLYFisher & Paykel Healthcare | ANNUAL REPORT 2023

Environmental &
Social Responsibility Policy
Our Environmental and Social Responsibility
Policy was introduced in November 2021.
This is a global policy and applies to all of
Fisher & Paykel Healthcare’s operations and
locations. Our intention is to create a positive
lasting impact on society and the environment.
One of the fundamental ways in which we
want to achieve this is through verifying and
validating our environmental, social and
ethical performance, and that of our suppliers.
We will collaborate with others to continuously
improve this performance. This includes
building trusted long-term relationships to
create better outcomes for all, as well as
striving to provide a high quality of life for
our employees and support our suppliers to
do the same for their people. Fisher & Paykel
Healthcare is committed to complying with
the letter and spirit of laws and regulations
relating to environmental and social
responsibility. The Environmental and Social
Responsibility Governance group has
established an environmental and social
responsibility programme based on gap
analysis and prioritisation within our operations
and supply chain.
Responsible Minerals Sourcing Procedure
In April 2022, we implemented our Responsible
Minerals Sourcing Procedure, which sets out
the way in which Fisher & Paykel Healthcare
will source and use minerals. We understand
the importance of actively mitigating human
rights abuses and other risks related to the
extraction of specific minerals from areas
where armed conflict and human rights abuses
may occur.
We work with existing suppliers and monitor
supply chain risks related to conflict minerals
to ensure responsible minerals sourcing.
As part of this process, we actively review,
assess and mitigate supply chain risks within
our supply chain and operations. This review
includes annually updated information from
the Responsible Minerals Assurance Process
(RMAP), an approach created by the
Responsible Minerals Initiative to help
companies make better decisions about
responsibly sourced minerals in their supply
chains. The RMAP identifies smelters that can
demonstrate, through an independent
third-party assessment, that the management
systems and sourcing practices for minerals
are in conformance with RMAP standards. All
suppliers that are identified to supply (or are
known to supply) tin, tantalum, tungsten and
gold are asked to provide sourcing data using
the RMAP model set out above.
As a part of the ongoing process of due
diligence, we steer our suppliers (and their
supply chains) to source minerals from
smelters validated via RMAP (or an alternative
equivalent). Our process for responsible
minerals sourcing is consistent with the OECD
Due Diligence Guidance for the Responsible
Supply Chains of Minerals from Conflict-
Affected and High-Risk Areas. One of the key
aims of this process is to ensure we are
mitigating human rights abuses, including
modern slavery.
61Section 03 | OPERATING SUSTAINABLYFisher & Paykel Healthcare | ANNUAL REPORT 2023

SUPPLIERS – CONTINUED
OUR TRAINING
All staff globally are required to undergo
training on the Code of Conduct. Quality,
procurement and sourcing staff receive
additional training on the principles and
processes that Fisher & Paykel Healthcare
follows in managing its supply chain, including
its due diligence and risk assessment and
management processes and procedures.
OUR ASSESSMENT OF THE EFFECTIVENESS
OF OUR APPROACH
Fisher & Paykel Healthcare is committed to
reviewing its supply chains and operations to
continuously assess modern slavery risks. As a
large organisation with a complex supply chain,
we acknowledge that we need to continue to
treat this as a priority as a company.
If a potential or actual modern slavery
incident was identified in our supply chain or
operations, it would be treated in a similar way
to other violations, such as a material health
and safety incident. The approach primarily
focuses on engaging and collaborating with
suppliers where any potential breaches have
been identified, to implement remedial
measures. This includes corrective actions to
address the underlying causes and violations
to prevent reoccurrence.
During this reporting period, our key focus has
been on understanding our modern slavery
risks within our supply chain and operations.
Assessing and addressing modern slavery risks
within our operations and supply is an ongoing
process, and we are putting in place
procedures to assess the effectiveness of our
actions so that they can be built upon.
We have developed a supplier-categorisation
criteria to form a baseline of where each
supplier stands and define the course of
development actions to be taken. The
categories are as follows:
• Embarking: Suppliers at an early stage with
few – or no – policies focused on social
responsibility.
• Intermediate: Suppliers that have policies
and some internal controls in place covering
social responsibility.
• Proficient: Suppliers that are identifying and
actively working to mitigate modern slavery
risks both within their organisation and also
their supply chain.
• Advanced: Suppliers that have enlisted
third-party verification to assess its modern
slavery processes and risk mitigations.
During the 2023 financial year, our team
performed assessments on a range of suppliers
through a combination of self-assessment
surveys and research on suppliers’ publicly
available disclosures. Following these
assessments, we held one-to-one engagements
with 44 suppliers to support their
development. We subsequently upgraded the
status of 11 suppliers within our categorisation
criteria. Our focus in the coming year is
continuing to assess and support suppliers
development, targeting a proficient status for
as many as possible.
As part of our assessment of effectiveness, we
have undertaken regular reporting to our Audit
and Risk Committee. The Committee is
responsible for reviewing and monitoring our
environmental and social risk management
framework as well as how proposed actions
may be performed. We have also undertaken
the due diligence process for our direct
product and services suppliers and will
continue working closely with them. Through
the work the Environmental and Social
Responsibility Governance group undertakes,
we will be able to continue to assess the
effectiveness of our actions for the next
financial year.
We are not aware of any modern slavery
violations in our supply chain and operations
during the 2023 financial year.
During the period, we became aware of an
incident within our Indian operations where
there was alleged underpayment of hired
security guards. The personnel were hired as
employees of a third-party security company
which F&P had a contracting relationship with.
It was established that payment had not been
made to the security guards due to certain
payroll issues. The matter was rectified in July
2022, and the security guards subsequently
received their alleged dues.
62Section 03 | OPERATING SUSTAINABLYFisher & Paykel Healthcare | ANNUAL REPORT 2023

FY23
ADDRESSING MODERN SLAVERY:
FY23 HIGHLIGHTS
• LAUNCHED our new Sustainable
Procurement Framework to suppliers
• COMPLETED recruitment of
sustainable procurement specialist to
cover the Asia region (designated as
our highest-risk region)
• SELECTED third-party specialist for
deep dive of high-risk areas in our
supply chain
• UPDATED our Supplier Code
of Conduct
• EXTENDED our Speak Up Procedure
to suppliers
ADDRESSING MODERN SLAVERY:
FOCUS AREAS FOR FY24 AND FY25
• CONTINUE TO IMPROVE internal and
external reporting and disclosure
• CONTINUE DEVELOPING and
measuring key performance
indicators to monitor effectiveness
of our initiatives
• CONTINUE TRAINING our staff on
modern slavery risks
• DEVELOPMENT of digital learning
resources to educate suppliers on
topics covered in our Supplier Code
of Conduct
• REVIEWING and updating relevant
supplier agreements to include
specific modern slavery clauses
• MAPPING multiple tiers of our supply
chain to obtain greater visibility of the
critical components used within our
products
• APPOINTED a Sustainable
Procurement Lead for our
Mexico manufacturing sites
• IMPROVED internal and external
reporting and disclosure
• TRAINED staff on modern
slavery risks
• SUSTAINABLE procurement
aspects now included in supplier
business reviews
• UPGRADED the status of
11 categorised suppliers in
accordance with our supplier
categorisation criteria
63Section 03 | OPERATING SUSTAINABLYFisher & Paykel Healthcare | ANNUAL REPORT 2023

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
more sustainable future for all.
The goals we are most closely
aligned with are Goal 3, Goal 8
and Goal 12, and our contributions
are outlined below.
UNITED NATIONS SUSTAINABLE
DEVELOPMENT GOALS: F&P FOCUS
AREAS
64Section 03 | OPERATING SUSTAINABLYFisher & Paykel Healthcare | ANNUAL REPORT 2023

GOAL 3:
Ensure healthy lives and promote wellbeing for all at all ages
UN SDG targetUN key indicators Our contribution
3.4
By 2030, reduce by one third premature
mortality from non-communicable diseases
through prevention and treatment and
promote mental health and wellbeing.
Mortality rate attributed to cardiovascular
disease, cancer, diabetes or chronic
respiratory disease.
Our Optiflow™ nasal high flow therapy is a first-line
treatment for patients suffering for respiratory
disease, including being used both pre-intubation
and post-extubation. An estimated six million
patients were treated with our Optiflow therapy over
the past year.
3.6
By 2020, halve the number of global deaths
and injuries from road traffic accidents.
Death rate due to road traffic injuries.Hundreds of millions of people suffer from
obstructive sleep apnea (OSA) globally, and the
associated daytime fatigue creates significant risk
for drivers – there are clinically proven links between
these conditions and traffic accidents. Our range of
CPAP machines and masks are used by millions of
patients around the world for a better night’s sleep.
3.8
Achieve universal health coverage, including
financial risk protection, access to quality
essential healthcare services and access to
safe, effective, quality and affordable
essential medicines and vaccines for all.
Coverage of essential health services
(defined as the average coverage of
essential services based on tracer
interventions that include reproductive,
maternal, newborn and child health,
infectious diseases, non-communicable
diseases and service capacity and access,
among the general and the most
disadvantaged population).
The use of our Optiflow™ nasal high-flow therapy
has often been shown to reduce the escalation of
patient care, resulting in not only better outcomes
for the patient but also reducing cost and capacity
constraints for healthcare providers.
65Section 03 | OPERATING SUSTAINABLYFisher & Paykel Healthcare | ANNUAL REPORT 2023

SUSTAINABLE DEVELOPMENT GOALS – CONTINUED
GOAL 8:
Promote sustained, inclusive and sustainable economic growth,
full and productive employment and decent work for all
UN SDG targetUN key indicators: Our contribution:
8.2
Achieve higher levels of economic
productivity through diversification,
technological upgrading and innovation,
including through a focus on high-value
added and labour-intensive sectors.
Annual growth rate of real GDP per
employer person.
We are a major proponent of research and
development and in the 2023 financial year invested
11% of annual revenue into R&D. We have more than
800 people engaged in clinical research and product
and process development – they are primarily
engineers, scientists and physiologists.
8.3
Promote development-oriented policies that
support productive activities, decent job
creation, entrepreneurship, creativity and
innovation, and encourage the formalization
and growth of micro-, small- and medium-
sized enterprises, including through access
to financial services.
Proportion of informal employment in
non-agriculture employment, by sex.
We are a significant non-agricultural employer, with
a team of 6,449 permanent and 135 temporary
employees (as at 31 March, 2023). We are an equal
opportunity employer that values workplace
diversity. Of our full-time permanent employees, 52%
are women and 48% are men, and our total gender
pay ratio is 98.4%.
66Section 03 | OPERATING SUSTAINABLYFisher & Paykel Healthcare | ANNUAL REPORT 2023

GOAL 12:
Ensure sustainable consumption and production patterns
UN SDG targetUN key indicators: Our contribution:
12.2
By 2030, achieve the sustainable
management and efficient use of natural
resources.
Material footprint, material footprint per
capita, and material footprint per GDP.
Domestic material consumption, domestic
material consumption per capita, and
domestic material consumption per GDP.
We are committed to reducing our carbon footprint
in line with the 2015 Paris Agreement (1.5 degrees
celsius) science-based reduction targets. We aim to
reduce carbon emissions within our operational
control by 4.2 per cent annually (using the 2019
financial year as a base), and we are working with
our suppliers to set their own targets. We have also
established an absolute water reduction target of 2
per cent per year and have a range of initiatives to
this end, including a recently commissioned water
re-use plant at our Tijuana facility in Mexico.
12.5
By 2030, substantially reduce waste
generation through prevention, reduction,
recycling and reuse.
National recycling rate, tons of material
recycled.
We actively reduce waste and recycle materials. In
the 2023 financial year, we diverted 1,431 cubic
metres of waste from landfill, down 30 per cent on
the prior year. Our recycling efficiency rate was 54
per cent. We also have more than 50 product
development engineers across the company working
on our Ecodesign initiative, which is focused on
sustainable packaging, bio-based plastic technology
and sustainable procurement.
67Section 03 | OPERATING SUSTAINABLYFisher & Paykel Healthcare | ANNUAL REPORT 2023

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 bespoke 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 business 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.
BUSINESS RISK MANAGEMENT FRAMEWORK
Our approach to integrating quantitative risk
analysis into day-to-day management and
business operations continues to be developed.
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.
RISK ANALYSIS
We carry out risk analysis to support material
business decisions. The relevant stakeholders
are involved in such evaluations, and findings
are communicated to key decision-makers and
management. When making a decision,
carrying out a business activity or approving
an initiative, we apply a range of quantitative
risk management techniques to measure
uncertainty.
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
patients, 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.
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.
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.
68Section 03 | OPERATING SUSTAINABLYFisher & Paykel Healthcare | ANNUAL REPORT 2023

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 on
pages 23-25, we have identified key areas of risk for our business and strategies to mitigate them.
AreaDescriptionStrategies to mitigate
Product quality and
patient safety
Patients are harmed as a result of
using our products. This may result
in product recalls and potentially
product liability litigation.
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.
Health and safetyWork-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.
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 propertyThird 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 lossesCurrency risk is hedged in accordance with the Board-approved hedging procedure. The hedging procedure
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 continuityContinuity and quality of supplyWe 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.
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.
Climate-related risksChanging climate and associated
weather events disrupt the supply of
product to patients
These risks, impacts and opportunities are described in detail on pages 72-74.
69Section 03 | OPERATING SUSTAINABLYFisher & Paykel Healthcare | ANNUAL REPORT 2023

RISK MANAGEMENT – CONTINUED
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.
HEALTH AND SAFETY
We are committed to ensuring the health,
safety, and wellbeing of our people. As is the
case each year, the safety of our people and
products has been our highest priority.
With border restrictions relaxing through
the financial year, keeping our people safe
and helping them comply with a range of
COVID-related travel measures was a
significant focus. Updates were made to our
international travel procedure and additional
resources were made available to support
our people as they reconnected with
customers, clinical partners and colleagues
across the globe.
Ensuring our infrastructure expansion is carried
out in a safe manner remained a priority. Our
New Zealand health, safety and wellbeing team
supported the earthworks of our fifth building
in Auckland, while a new team member was
hired to oversee health, safety and wellbeing at
our new manufacturing facility in Guangzhou.
In Mexico, our team ran a health, safety and
wellbeing awareness week for our people and
their families. More than 900 attendees
benefited from the services made available,
which included medical check-ups,
vaccinations, dental inspections and group
fitness sessions.
Looking ahead to FY2024, our priority will be
continuing our efforts to align with ISO45001,
supporting the business’s ongoing
infrastructure expansion, and connecting
more closely with our regional sales offices.
MEXICO – HEALTH, SAFETY AND WELLBEING
AWARENESS WEEK
900+
ATTENDEES BENEFITED FROM A VARIETY OF
HEALTH SERVICES, FROM CHECK-UPS TO FITNESS
SESSIONS
70Section 03 | OPERATING SUSTAINABLYFisher & Paykel Healthcare | ANNUAL REPORT 2023