össur annual report2009 - Euroland

Össur’s aim is to maintain and increase its position as a
market leader in non-invasive orthopaedics
Össur’s aim is to play a leading role in the likely continuance
of consolidation in its markets. Össur’s success
thereof is subject to multiple factors both internal
and external. As for external factors the risk remains that
competitors accelerate the consolidation of the market,
and strengthen their own position, at the expense of
other participants like Össur.
Össur relies on agents and third-party distributors in
connection with the sale and distribution of its products.
Third-party agents and distributors sell some of Össur’s
products. The Company’s largest wholesale customer
accounted for 6% of the Company’s net revenues for
the year ended December 31, 2009. Other distributors
accounted for less than 2% of net revenues for the same
period. These agents and distributors are not employees
of Össur, and Össur may be unable to influence their
actions and performance.
risks related to Manufacturing
& operations
responsible: egill Jónsson, vice president of M&o
Össur is vulnerable to disruptions to its production
facilities.
Össur’s production facilities may be adversely affected
by man-made or natural disasters. An occurrence of such
a disaster or the disruption of Össur’s production for
any other reason could adversely affect the Company’s
production output, which, in turn, would impair the
Company’s ability to fulfil customer orders. This could
lead to a decline in sales and increased costs due to necessary
shifts in production within the Company and the
possible need to outsource production. The Company
maintains insurance to cover such losses relating to
man-made and natural disasters. No assurance can be
given, however, that insurance payments would be sufficient
to cover the full loss resulting from a disruption
in Össur’s production or that Össur’s insurance would
cover the event that causes such a disruption.
Össur is dependent on certain raw materials.
Össur’s products require silicone and carbon, metals
and other raw materials. Such raw materials may not
always be available on favorable terms, or at all.
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