Koninklijke Philips N.v. · EURONEXT:PHIA
Koninklijke Philips — Koninklijke Philips N.V. NY Registry Shares — Q1 2025 Earnings Presentation
25 slides from Koninklijke Philips's earnings presentation, May 6, 2025
Slide 1: First quarter 2025 results
First quarter 2025 results Roy Jakobs, Chief Executive Officer Charlotte Hanneman, Chief Financial Officer May 6, 2025
Slide 2: Table of contents
Table of contents First quarter 2025 performance 4 2025 outlook 15 Financial appendix 20 2 © Koninklijke Philips N.V.
Slide 3: 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 4: Key takeaways
Key takeaways Q1 highlights • Order growth increased, primarily driven by strength in North America, offsetting a double-digit decline in China • Sales ahead of company outlook driven by growth in Personal Health and royalty phasing • Improved gross margin driven by innovation value and productivity
Slide 5: Order intake growth continued in Q1, led by strong North America demand
Order intake growth continued in Q1, led by strong North America demand, fueled by innovation and solid fundamentals Comparable order intake growth1 Revenue split LTM Q1 20252 10% 8% Personal Health ~20% 6% 4% Order book1 2% ~40% 0% 0% -2% -4% ~40% Software, services, In the quarter Rolling last twe
Slide 6: Recently launched AI innovations fuel 50% of sales
Recently launched AI innovations fuel 50% of sales Visual Patient Avatar Elevate Ultrasound Activating peripheral vision in AI-solution for advanced imaging, the operating room intuitive workflows SmartSpeed Precise Azurion neuro biplane Dual-AI MR reconstruction for 3x faster scans with 80% sharper
Slide 7: Solid progress on execution priorities
Solid progress on execution priorities Patient safety and quality End-to-end supply chain Simplified operating embedded in businesses, delivering better model driving innovation and culture lead times and service accountability and agility Strengthened patient safety and quality Quality and velocity
Slide 8: Global hospital demand and consumer sentiment
Global hospital demand and consumer sentiment North America Europe Greater China Rest of world Health Solid Slight improvement Strong underlying Solid Systems1 demand Key drivers Productivity and Productivity and • Anti-corruption and Infrastructure consolidation digitalization national renewal inve
Slide 9: Diagnosis & Treatment
Diagnosis & Treatment NOTE FROM ZOW: Option A Financial performance In millions of EUR Q1 Q1 unless otherwise stated 2024 2025 Sales 2,026 1,965 Comparable sales growth 3% -4% Adj. EBITA margin 9.2% 9.5% Income from operations 146 153 Q1 2025 highlights • Sales decreased due to a double-digit declin
Slide 10: Connected Care
Connected Care Financial performance In millions of EUR Q1 Q1 unless otherwise stated 2024 2025 Sales 1,164 1,182 Comparable sales growth -1% 0% Adj. EBITA margin 6.4% 3.5% Income from operations1 -1,065 -81 Q1 2025 highlights • Sales were broadly flat across all our businesses • Hospital Patient Mo
Slide 11: Personal Health
Personal Health NOTE FROM ZOW: Option A Financial performance In millions of EUR Q1 Q1 unless otherwise stated 2024 2025 Sales 790 811 Comparable sales growth 3% 1% Adj. EBITA margin 15.2% 15.2% Income from operations 116 116 Q1 2025 highlights • Double-digit growth in Europe and growth markets and
Slide 12: Performance slightly ahead of company outlook; step-up in gross margin
Performance slightly ahead of company outlook; step-up in gross margin from innovation and productivity Q1 2025 vs Q1 2024 In millions of EUR unless otherwise stated Sales Adjusted EBITA Free Cash Flow 4,097 354 -1,091 Adjusted EBITA margin Year on year excluding Comparable Sales Growth US Respironi
Slide 13: Adj. EBITA margin decreased slightly mainly due to sales decline
Adj. EBITA margin decreased slightly mainly due to sales decline, partly offset by higher gross margin from innovation and productivity Group Adj. EBITA margin1 in Q1 2025 -0.6% -0.6% -2.0% 2.4% 9.4% 8.6% Adj. EBITA Volume Cost headwinds Productivity FX, other Adj. EBITA Q1 2024 and pricing Q1 2025
Slide 14: Productivity initiatives delivered EUR 147 million in the quarter
Productivity initiatives delivered EUR 147 million in the quarter; on track to deliver EUR 800 million in 2025 Productivity initiatives savings1 In millions of EUR unless otherwise stated Q1 2025 Q1 2023 – Q1 2025 • Simplified operating model Operating • R&D prioritization, reduction of Corporate Re
Slide 15: 2025 outlook
2025 outlook 15 © Koninklijke Philips N.V.
Slide 16: Mitigations to sustain operational momentum and manage tariff impact
Mitigations to sustain operational momentum and manage tariff impact Short- and long-term mitigations • Supplier management and network optimisation • Inventory management Estimated 2025 • Accelerate regionalization and localization EUR 250 - 300 million • Pursuing exemptions and leveraging specialt
Slide 17: Reiterating sales outlook while reflecting net tariff impact
Reiterating sales outlook while reflecting net tariff impact after substantial mitigations in adjusted margin (-100bps) and free cash flow outlook Previous 2025 outlook Updated 2025 outlook Comparable sales 1 – 3% Reiterated: 1 – 3% growth All business segments growing within the range All business
Slide 18: 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 19: Latest FX, below the line items and segment Other outlook
Latest FX, below the line items and segment Other outlook Q2 2025 Full year 2025 FX translation1 Group and business segments ~(3.0)% (2.0) – (2.5)% Effective tax rate 24-26% Financial income and expense (EUR million) ~(260) Segment Other (EUR million) Sales 110 – 120 540 – 570 Adj. EBITA ~(30) ~(20)
Slide 20: Financial appendix
Financial appendix 20 © Koninklijke Philips N.V.
Slide 21: 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 3,000 14.5% 20.1% 19.9% 12.2% 11.7% 12.0% 19.6% 18.6% 2,500
Slide 22: Debt maturity profile and liability management
Debt maturity profile and liability management Long-term debt profile and liability management Debt maturity profile as per March 31, 2025 in billions of EUR unless otherwise stated Long-term debt1 • Total net debt position of EUR 6.4 billion 1.8 Short-term debt2 Unutilized standby and • Average ten
Slide 23: Net capital expenditures, depreciation and amortization
Net capital expenditures, depreciation and amortization In millions of EUR unless otherwise stated Q1 2024 Q1 2025 Net capital expenditures -165 -158 Depreciation -159 -151 Amortization and impairment: -136 -125 of acquired intangible assets -72 -57 of other intangible assets -63 -68 23 Note: Amount
Slide 24: Restructuring, acquisition-related charges and other items
Restructuring, acquisition-related charges and other items In millions of EUR unless otherwise stated Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2024 Q1 2025 Restructuring and acquisition-related charges Diagnosis & Treatment 19 25 16 97 157 14 Connected Care 17 18 19 -1 53 15 Personal Health - 17 2 5 25 3
Slide 25: PHILIPS
PHILIPS
Koninklijke Philips N.V. NY Registry Shares — Q1 2025 Earnings Presentation on 6ix