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Amsterdam, the Netherlands – At the company’s virtual Capital Markets Day with investors and financial analysts today, Royal Philips (NYSE: PHG, AEX: PHIA), a global leader in #health technology, will provide further details of its strategic plan and performance trajectory for the 2021–2025 period. Starting at 13:00 CET / 12:00 GMT / 07:00 EST, #philips CEO #fransvanhouten, together with CFO #abhijitbhattacharya and several executives, will share deeper insights into the company’s path to value.
“We have transformed #philips into a global #health technology leader, applying our innovation strength to improve the #health and well-being of #people,” said #fransvanhouten, CEO of #royalphilips. “The systems, smart devices, AI & software, and services we develop help consumers improve their #health and well-being, and healthcare providers achieve better outcomes, higher productivity, and improved patient and staff experiences. The transformation has also led to a structurally improved growth and profitability profile of the company. Looking ahead, we are excited to enter the next growth phase guided by our strategic imperatives to better serve customers and improve quality, boost growth in our core businesses, and win with solutions.”
As previously reported, Philips’ targets for accelerated growth, higher profitability and improved cash flow for the 2021–2025 period are [1]:
“We plan to accelerate sales growth and improve the Adjusted EBITA margin to high-teens by 2025,” said #abhijitbhattacharya, CFO of #royalphilips. “Our productivity initiatives will deliver additional cumulative net savings of EUR 2 billion by 2025. A strong cash conversion of over 90%, combined with the efficiency of our balance sheet, will drive the planned free cash flow generation of above EUR 2 billion by 2025. Overall, we have established a robust financial framework that is geared to value creation, which will enable us to deliver approximately 10% Adjusted Earnings per Share growth annually.”
The new financial targets are underpinned by Philips’ three strategic imperatives:
1. Further improving the customer experience and operational excellence
For example:
2. Boosting growth in the core by innovating to extend category leadership, geographic expansion, and deeper customer partnerships
For example:
3. Winning with solutions to support consumers with their personal #health, and to help professional healthcare customers achieve the Quadruple Aim
For example:
Philips’ Capital Markets Day will start today at 13:00 CET / 12:00 GMT / 07:00 EST. From this time onwards, please click on this link to follow the webcast and download the presentations that will be used during the day.
1) The new targets exclude the Domestic Appliances business. As announced in January 2020, the Domestic Appliances business is being separated from #philips, a process that is expected to be completed in the third quarter of 2021.
2) The Diagnosis & Treatment business segment is expected to reach 15-17% Adjusted EBITA margin, the Connected Care segment is expected to reach 17-19%, and the Personal #health business segment is expected to reach 19-20%.
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