Koninklijke Philips N.v. · EURONEXT:PHIA
Koninklijke Philips — Investor Day (2018)
38 slides from Koninklijke Philips's investor day presentation, 2018
Slide 1: Image-Guided Therapy: Leading the way to better treatment
Image-Guided Therapy Leading the way to better treatment Bert van Meurs Business Leader Image-Guided Therapy
Slide 2: Key takeaways
Key takeaways • Image-Guided Therapy is a profitable high-growth market delivering benefits for health systems and patients • We are successfully executing our strategy in Image-Guided Therapy: – Gaining market share with a unique portfolio of systems, smart devices, software and services – Strong d
Slide 3: Creating a unique position by executing on a distinctive strategy
Creating a unique position by executing on a distinctive strategy Leadership in systems Expand into devices Innovate the procedure Better margins and Acquisitions perform Solutions delivering on the market share gains +300 bps better within Philips Quadruple Aim 3
Slide 4: Broad portfolio of IGT Devices
Broad portfolio of IGT Devices Decide Guide Treat Confirm Intravascular QuickTrack Pioneer Plus Azurion Quick-Cross Azurion Ultrasound atherectomy IVUS-guided imaging support catheters imaging (IVUS) guidewire re-entry catheter Veradius Verrata Plus Veradius imaging pressure Phoenix hybrid1 AngioScu
Slide 5: Attractive EUR 8+ billion IGT market growing high-single-digit
Attractive EUR 8+ billion IGT market growing high-single-digit1 Coronary Peripheral Electro- Structural Neurology Oncology Spine surgery Vascular physiology Heart Disease + 4% + 6% + 10% + 17% + 11% + 8% + 9% 5 1 Procedural growth CAGR 2015-2020
Slide 6: Philips leads with interventional suites in all IGT clinical markets
Philips leads with interventional suites in all IGT clinical markets Coronary, PV and EP represent 80% of the procedures Coronary Peripheral Vascular Electrophysiology 36% 18% Coronary Electrophysiology Market size1 Structural Heart Neurology Oncology Spine surgery 36% Disease Peripheral Vascular 6
Slide 7: Building unique market-leading portfolio of integrated solutions
Building unique market-leading portfolio of integrated solutions Every second a patient is treated with our Image-Guided Therapy solutions Smart Software devices Peripheral Electro- Coronary Vascular physiology Services Systems 7
Slide 8: Peripheral Artery Disease: providing a total solution
Decide Guide Treat Confirm 20 million Providing a total patients with Peripheral Artery solution in Disease Peripheral Artery Critical Limb Ischemia Disease 1 year outcome 45% 30% 25% Alive with Amputation Mortality two limbs 7% procedure growth 1 million procedures per year 8
Slide 9: EPD Solutions: unique EP technology for Atrial Fibrillation
Decide Guide Treat Confirm 33 million EPD Solutions people suffer from Unique EP technology Atrial Fibrillation (AF) provides detailed 3D anatomical heart information <1% Potential: of AF patients are treated with ablation • Enhance procedure efficacy, reduce cost and increase safety • Less radiatio
Slide 10: Key takeaways
Key takeaways • Image-Guided Therapy is a profitable high-growth market delivering benefits for health systems and patients • We are successfully executing our strategy in Image-Guided Therapy: – Gaining market share with a unique portfolio of systems, smart devices, software and services – Strong d
Slide 11: Monitoring & Analytics: Leveraging smart analytics for advanced patient care
Monitoring & Analytics Leveraging smart analytics for advanced patient care Felix Baader Business Leader Monitoring & Analytics
Slide 12: Key takeaways
Key takeaways # 1 in Monitoring & Analytics solutions • >40% market share globally and increasing further • Complete portfolio for all clinical needs and price points • Leveraging large installed base Expanding into large lower-acuity market • Guardian Early Warning Scoring • Patient triaging and re
Slide 13: Market leader with the most differentiated monitoring solutions portfolio
Market leader with the most differentiated monitoring solutions portfolio Looking for a better Picture Delivering patient Growing with medical Providing tailored and monitoring consumables and sensors value-added services • Best-in-class monitoring systems • Breath and depth of sensor portfolio • Mo
Slide 14: Strengthen #1 position with groundbreaking innovations
Strengthen #1 position with groundbreaking innovations, delivering significant value to patients and our customers Leading innovations Expanding into new care settings Patient Care vision to transform patient Out of hospital monitoring and provide actionable and + ubiquitous monitoring advanced clin
Slide 15: Empowering acute care teams by linking remote patient monitoring technology
1 in 8 adult ICU patients monitored by the eICU Empowering acute program in the US1 care teams by 38% increase linking remote in acute capacity management2 patient monitoring 26% reduction technology with in mortality3 evidence-based 30% reduction care transformation in length-of-stay4 1. Per sccm.o
Slide 16: Our wearable biosensor with IntelliVue Guardian
Wireless, 4-day-life and fully disposable, Our wearable collects most important vital signs biosensor with and detects falls IntelliVue Guardian helps 95% of patients agree that it’s caregivers keep comfortable to wear on their chest1 watch over patients in need 73% feel better cared for while of mo
Slide 17: Key takeaways
Key takeaways # 1 in Monitoring & Analytics solutions • >40% market share globally and increasing further • Complete portfolio for all clinical needs and price points • Leveraging large installed base Expanding into large lower-acuity market • Early-warning systems • Patient triaging and remote surv
Slide 18: Diagnostic Imaging: Accelerating our momentum
Diagnostic Imaging Accelerating our momentum Kees Wesdorp Business Leader Diagnostic Imaging
Slide 19: Key takeaways
Key takeaways • Diagnostic Imaging is at the heart of our strategy, enabling precision diagnosis and productivity for our customers • Our strategy centered around innovation, customer-centricity, and productivity is paying off: – Strong traction with new portfolio of systems, software and services t
Slide 20: Driving growth and productivity
Driving growth and productivity Double-digit Overhead cost reduction order intake growth across modalities through delayering +110 bps Manufacturing productivity market share gain in North America1 with good progress on footprint simplification +120 bps Procurement savings market share gain globally
Slide 21: Achieving objectives of the Quadruple Aim
Growing leadership in precision diagnosis to address the Quadruple Aim Precision diagnosis by integrating Achieving objectives of the Quadruple Aim radiology, pathology, genomics and longitudinal data1 + AI-enhanced workflow and decision support + First-time-right superior images and improved patien
Slide 22: Strong traction with 70% new portfolio and unique solutions
Strong traction with 70% new portfolio1 and unique solutions Deep integration with informatics drives productivity, diagnostic confidence and intelligent workflows Precision diagnosis by First-time-right superior AI-enhanced workflow integrating radiology, images and improved and decision support pa
Slide 23: Smart informatics and MRI systems build on the Quadruple Aim
Our smart informatics and MRI systems build on the imperative of the Quadruple Aim Improved Improved Improved Lower health patient staff cost outcomes experience satisfaction of care Confidence Comfort Speed 6
Slide 24: Compressed SENSE enables up to 50% scan time reduction
Compressed SENSE enables up to 50% scan time reduction Reduced scan times for all anatomies drives real value for our customers Brain L-spine Knee Liver From 15 min to 8 min 57% From 22 min to 13 min 41% From 17 min to 10 min 41% From 14 min to 8 min 38% reduction reduction reduction reduction Compr
Slide 25: Continued success with innovations in our systems platforms
Continued success with innovations in our systems platforms Philips Ambition 1.5T MRI Helium-free operations Designed to facilitate low siting and other construction costs Toward uninterrupted MR operations High-performance by design 8
Slide 26: Vereos Digital PET/CT imaging with IntelliSpace
Vereos Digital PET/CT imaging combined with IntelliSpace app enabling precision diagnosis and oncology therapy planning Industry- Better Advanced leading, experience visualization diagnostic for patients and confidence and staff with streamlined fast scans, low small lesion PET dose workflow detecta
Slide 27: Key takeaways
Key takeaways • Diagnostic Imaging is at the heart of our strategy, enabling precision diagnosis and productivity for our customers • Our strategy centered around innovation, customer-centricity, and productivity is paying off: – Strong traction with new portfolio of systems, software and services t
Slide 28: Sleep & Respiratory Care: Scaling solutions, driving geographic expansion
Sleep & Respiratory Care Scaling solutions, driving geographic expansion John Frank Business Leader Sleep & Respiratory Care
Slide 29: Key takeaways
Key takeaways • Our Sleep & Respiratory Care business, representing sales of EUR 2.0 billion1 with profitable growth, leverages leading positions across markets • Strong growth in our core business with key innovations around Trilogy ventilation and DreamWear masks • Strengthening our leadership in
Slide 30: Philips is leading in Sleep
Philips is leading in Sleep Unlocking the significant market opportunity 100 million people suffer from obstructive sleep apnea worldwide1 USD 150 billion annual economic burden of undiagnosed sleep apnea in the US 2 >80% of patients suffering from obstructive sleep apnea are undiagnosed1 3 1 StopBa
Slide 31: Philips is leading in Respiratory Care
Philips is leading in Respiratory Care Addressing a significant market need 251 million people suffer from COPD worldwide1 USD 50 billion annual direct and indirect costs of COPD in the US2 3rd Third leading cause of death1 4 1 Global Burden of Disease Study, World Health Organization 2016; 2 Nation
Slide 32: Innovations driving growth and recurring revenue
Innovations driving growth and recurring revenue Award winning Trilogy Growing recurring revenues >70% CSG2 DreamWear mask family growing 4.3 Consumer Rating Full Face ~50%3 of segment mix • #1 selling home ventilator currently supporting ~200,000 patients, est. ~50% market share 1 • Integrated, con
Slide 33: Philips is uniquely positioned to scale Respiratory care model
Philips is uniquely positioned to scale Respiratory care model Integrated solution from acute to post-acute enables the right care at the right time at the right place Connectivity and Data analytics and Care management and Care management data aggregation tracking coordination services Philips Conn
Slide 34: Coordinated COPD pilot for care transition management
Coordinated COPD pilot 1 for Care transition management from hospital to home >890 patients participated in an integrated COPD Care pilot at St. Vincent’s Health System, Alabama, USA 80% reduction in acute COPD 30-day re-admissions USD 4.4 million cost savings in all diagnosis re- admissions 1 Alaba
Slide 35: We are expanding our business geographically
We are expanding our business geographically Delivering high-double-digit growth in underpenetrated markets Brazil India China >35% growth1 >25% growth1 >20% growth1 8 1 YTD Q3 2018
Slide 36: Fueling success in China, leveraging our expansion model
Fueling success in China, leveraging our expansion model Targeting 160 million people in China for OSA and COPD Propositions Multichannel Local partnerships Awareness Education and solutions distribution • Build brand through • Hosting clinician • Adopting for local #1 position in China: • Local joi
Slide 37: We are driving consumerization in the sleep market
We are driving consumerization in the sleep market Expanding solutions based on clinical experience and deep consumer insights Appealing to the sleep apnea consumer Addressing sleep deprivation • Compact travel CPAP with same therapy and comfort • New-to-world SmartSleep headband, clinically validat
Slide 38: Key takeaways
Key takeaways • Our Sleep & Respiratory Care business, representing sales of EUR 2.0 billion1 with profitable growth, leverages leading positions across markets • Strong growth in our core business with key innovations around Trilogy ventilation and DreamWear masks • Strengthening our leadership in