At a meeting with investors and financial analysts today in London, Royal Philips (NYSE: PHG, AEX: PHIA) will provide the financial markets with an update on the company's transformation into a global HealthTech leader and the performance roadmap. At the meeting, Philips Chief Executive Officer Frans van Houten, Chief Financial Officer Abhijit Bhattacharya and other senior managers will discuss the company's strategy to continue on its path to capture the many attractive opportunities in the growing health technology market.
"I am proud that after five years, Philips has transformed into a focused HealthTech leader with a broad portfolio of innovative solutions to drive better health outcomes for people and higher productivity for care providers," said Frans van Houten. "The businesses in our HealthTech portfolio are strong and have the right fundamentals for sustained profitable growth. Looking ahead, I am confident in our strategy. We target a performance trajectory to deliver 4-6% comparable sales growth and a 100 basis point improvement in Adjusted EBITA on average per year for the next three to four years. This will bring us in line with the average market profitability of mid-teens."
Leveraging its innovative healthcare technology, deep clinical expertise, strong consumer franchise and global market reach, Philips will create value for its customers and shareholders by:
- Improving margins by serving customers better, driving productivity, while continuing to invest in innovation and the digital transformation.
- Boosting growth through deep customer partnerships and expanding global geographic coverage.
- Providing innovative solutions with smart suites of systems, devices, software and services improving patient outcomes and provider productivity.
Next to the mid-single-digit (4% - 6%) comparable sales growth and an Adjusted EBITA margin step-up of 100 basis points on average per year for the HealthTech portfolio for the medium term, Philips also expects to improve the Return on Invested Capital (ROIC) to mid-to-high teens based on the organic growth plan, and to generate approximately EUR 1 billion - EUR 1.5 billion in cash annually.
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- Philips Profile
About Royal Philips
Royal Philips (NYSE: PHG, AEX: PHIA) is a leading health technology company focused on improving people’s health and enabling better outcomes across the health continuum from healthy living and prevention, to diagnosis, treatment and home care. Philips leverages advanced technology and deep clinical and consumer insights to deliver integrated solutions. The company, headquartered in the Netherlands, is a leader in diagnostic imaging, image-guided therapy, patient monitoring and health informatics, as well as in consumer health and home care. Philips' health technology portfolio generated 2015 sales of EUR 16.8 billion and employs approximately 69,000 employees with sales and services in more than 100 countries.