Koninklijke Philips N.v. · EURONEXT:PHIA
Koninklijke Philips — Koninklijke Philips N.V. NY Registry Shares — Q4 2024 Earnings Presentation
27 slides from Koninklijke Philips's earnings presentation, Feb 19, 2025
Slide 1: Fourth quarter and full-year 2024 results
Fourth quarter and full-year 2024 results February 19, 2025
Slide 2: Important information
Important information Forward-looking statements and other important information This document and the related oral presentation, including responses to questions following the presentation, contain certain forward-looking statements with respect to the financial condition, results of operations and
Slide 3: Table of contents
Table of contents Fourth quarter and full-year 2024 performance 4 2025 outlook 16 Financial appendix 22 3 © Koninklijke Philips N.V.
Slide 4: Key takeaways
Old, TBU Key takeaways • Delivered orders and sales growth, improved profitability, and strong cash flow in Q4 and FY 2024; orders and sales 4% ex-China in FY 2024 • Made solid progress on our plan and enhanced execution; finalized Philips Respironics recall-related US settlements • Strengthened our
Slide 5: Continued solid execution of the three-year plan
Continued solid execution of the three-year plan 2023-2025 plan 2023-2024 2024 As provided Jan 30, 2023 plan-to-date Comparable From low-to-mid single 1% ~3.5% CAGR Driven by solid growth ex-China sales growth digits Adj. EBITA From high single digits Operational improvements, 11.5% +410 bps margin1
Slide 6: Delivered orders and sales growth, improved profitability, and strong cash flow in Q4 2024
Delivered orders and sales growth, improved profitability, and strong cash flow as expected in Q4 2024 Financial performance Q4 2024 highlights Q4 Q4 In millions of EUR unless otherwise stated 2023 2024 • Order growth driven by strong performance in the US and in Growth geographies, partly offset by
Slide 7: Delivered orders and sales growth, improved profitability, and strong cash flow in FY 2024
Delivered orders and sales growth, improved profitability, and strong cash flow in FY 2024 Financial performance 2024 highlights In millions of EUR unless otherwise stated 2023 2024 • Orders grew, with solid growth of 4% in rest of world, largely Sales 18,169 18,021 offset by double-digit decline in
Slide 8: AI-driven, industry-leading innovations launched in 2024
AI-driven, industry-leading innovations launched in 2024 Next-gen BlueSeal CT 5300 Spectral CT 7500 RT Transcend Ultrasound LumiGuide Navigation 1.5T MR Wire PM 6000 and Avent Premium Sonicare 5000-7000 Azurion Neuro Biplane Zenition 90 Motorized Visual Avatar Connected baby monitor series ~50% ~50%
Slide 9: Diagnosis & Treatment
Diagnosis & Treatment NOTE FROM ZOW: Option A Financial performance In millions of EUR Q4 Q4 2023 2024 unless otherwise stated 2023 2024 Sales 2,498 2,440 8,825 8,790 Comparable sales growth 5% (1)% 11% 1% Adj. EBITA margin 10.5% 12.1% 11.6% 11.6% Income from operations 134 3 721 592 Q4 2024 highlig
Slide 10: Connected Care
Connected Care Financial performance In millions of EUR Q4 Q4 2023 2024 unless otherwise stated 2023 2024 Sales 1,353 1,426 5,138 5,134 Comparable sales growth (11)% 7% 1% 2% Adj. EBITA margin 15.0% 15.0% 7.2% 9.6% Income from operations (332) 58 (1,199) (466) Q4 2024 highlights • Sales growth on th
Slide 11: Personal Health
Personal Health NOTE FROM ZOW: Option A Financial performance In millions of EUR Q4 Q4 2023 2024 unless otherwise stated 2023 2024 Sales 1,069 1,027 3,602 3,486 Comparable sales growth 7% (2)% 3% (1)% Adj. EBITA margin 19.9% 18.0% 16.6% 16.7% Income from operations 208 176 552 544 Q4 2024 highlights
Slide 12: Productivity initiatives ahead of plan; EUR 1.7 billion delivered to date
Productivity initiatives ahead of plan; delivered EUR 163 million in the quarter and over EUR 1.7 billion to date Productivity initiatives1 In millions of EUR unless otherwise stated Q4 2024 Q1 2023 – Q4 2024 • Simplified operating model Operating • R&D prioritization, reduction of Corporate Researc
Slide 13: Adjusted EBITA margin improvement in Q4 and FY driven by operational improvements
Adjusted EBITA margin improvement in Q4 and FY mainly driven by operational improvements and productivity measures Group Adj. EBITA margin1 in Q4 2024 Group Adj. EBITA margin1 in FY 2024 (0.4)% (0.2)% 2.6% (1.4)% (0.3)% (0.1)% 3.0% (1.7)% 12.9% 13.5% 10.6% 11.5% Adj. EBITA Volume Cost Productivity O
Slide 14: We have made solid progress on our execution priorities
We have made solid progress on our execution priorities Patient safety and quality End-to-end supply chain Simplified operating embedded in businesses, delivering better model driving accountability innovation and culture lead times and service and agility Strengthened culture, fully embedded De-ris
Slide 15: Deploying our new culture of impact with care
We are deploying our new culture of impact with care, building on the right team and Healthtech capabilities The right team and capabilities Clarity & Execution & Simplicity Performance 70% Renewal of Executive Committee Our culture Impact with care 75% Executive hires with Healthtech For patients,
Slide 16: 2025 outlook
2025 outlook © Koninklijke Philips N.V.
Slide 17: Expect to improve performance, grow sales and orders and expand margin
Expect to improve performance, grow sales and orders within a challenging macro environment and expand margin Full-year 2025 • All business segments growing within the range Comparable sales growth • Back-end-loaded year with China expected to decline mid-to-high single digit due to double-digit dec
Slide 18: Raising productivity target to EUR 2.5 billion
Raising productivity target to EUR 2.5 billion driven by cost efficiencies and further operating model simplification; EUR 800 million in 2025 Productivity initiatives1 2023-2025 In millions of EUR unless otherwise stated Previous target Updated target Operating model 950-1,050 1,050-1,150 Procureme
Slide 19: Restructuring, acquisition-related charges and other items
Restructuring, acquisition-related charges and other items Full-year 2025 Restructuring costs • Further operating model simplification ~100 bps • Manufacturing and R&D footprint and platform optimization Other items • Mainly related to the Consent Decree, other quality action-related charges, ~200 b
Slide 20: Latest FX, below the line items and segment Other outlook
Latest FX, below the line items and segment Other outlook Q1 2025 Full year 2025 FX translation1 Group and business segments 1.5 – 2.0% 1.5 – 2.0% Effective tax rate 24-26% Financial income and expense (EUR million) ~(275) Segment Other (EUR million) Sales 100 – 120 540 – 570 Adj. EBITA ~(35) ~(20)
Slide 21: Key takeaways
Old, TBU Key takeaways • Delivered orders and sales growth, improved profitability, and strong cash flow in Q4 and FY 2024; orders and sales 4% ex-China in FY 2024 • Made solid progress on our plan and enhanced execution; finalized Philips Respironics recall-related US settlements • Strengthened our
Slide 22: Financial appendix
Financial appendix © Koninklijke Philips N.V.
Slide 23: Working capital and inventories
Working capital and inventories Group working capital1 Group inventories In millions of EUR unless otherwise stated Excluding insurance In millions of EUR unless otherwise stated as % of LTM sales2 receivable* as % of LTM sales2 15.5% 4,500 19.6% 3,000 14.5% 20.1% 19.9% 12.2% 11.7% 19.1% 2,500 10.0%
Slide 24: Debt maturity profile and liability management
Debt maturity profile and liability management Long-term debt profile and liability management Debt maturity profile as per December 31, 2024 in billions of EUR unless otherwise stated Long-term debt1 • Total net debt position of EUR 5.2 billion 1.8 Short-term debt2 Unutilized standby and • Net Debt
Slide 25: Net capital expenditures, depreciation and amortization
Net capital expenditures, depreciation and amortization In millions of EUR unless otherwise stated Q4 2023 Q4 2024 FY 2023 FY 2024 Net capital expenditures (182) (194) (554) (683)1 Depreciation (179) (168) (689) (696) Amortization and impairment: (148) (293) (572) (693)2 of acquired intangible asset
Slide 26: Restructuring, acquisition-related charges and other items
Restructuring, acquisition-related charges and other items In millions of EUR unless otherwise stated Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2024 Restructuring and acquisition- related charges Diagnosis & Treatment 65 30 8 15 118 19 25 16 97 157 Connected Care 49
Slide 27: PHILIPS
PHILIPS
Koninklijke Philips N.V. NY Registry Shares — Q4 2024 Earnings Presentation on 6ix