philips medical systems progress report€¦ · associated imaging centers hospitals less than than...
TRANSCRIPT
![Page 1: Philips Medical Systems Progress Report€¦ · associated Imaging Centers Hospitals less than than 125 beds and unassociated Imaging Centers The Strategic Business segment represents](https://reader035.vdocument.in/reader035/viewer/2022070720/5edfb87dad6a402d666b0a88/html5/thumbnails/1.jpg)
Philips Medical SystemsProgress Report
Jouko KarvinenPhilips Medical System
Analyst Meeting, Amsterdam June 9th 2004
![Page 2: Philips Medical Systems Progress Report€¦ · associated Imaging Centers Hospitals less than than 125 beds and unassociated Imaging Centers The Strategic Business segment represents](https://reader035.vdocument.in/reader035/viewer/2022070720/5edfb87dad6a402d666b0a88/html5/thumbnails/2.jpg)
Medical Systems 2
Philips MedicalProgress Report
• Seven consecutive quarters of improvement
• Building the future – Innovation• Building the future – Customers• Where do we go from here
![Page 3: Philips Medical Systems Progress Report€¦ · associated Imaging Centers Hospitals less than than 125 beds and unassociated Imaging Centers The Strategic Business segment represents](https://reader035.vdocument.in/reader035/viewer/2022070720/5edfb87dad6a402d666b0a88/html5/thumbnails/3.jpg)
Medical Systems 3
8%
9%
10%
11%
12%
13%
14%
15%
Q42
001
Q1 2
002
Q2 2
002
Q3 2
002
Q4 2
002
Q1 2
003
Q2 2
003
Q3 2
003
Q4 2
003
Q1 2
004
Q2 2
004
Q3 2
004
Q4 2
004
The path (EBITA)
3.5 margin points up in seven quarters 1.7 points to go in 3 quarters
![Page 4: Philips Medical Systems Progress Report€¦ · associated Imaging Centers Hospitals less than than 125 beds and unassociated Imaging Centers The Strategic Business segment represents](https://reader035.vdocument.in/reader035/viewer/2022070720/5edfb87dad6a402d666b0a88/html5/thumbnails/4.jpg)
Medical Systems 4
Progress Report
+32 % +19 % EBIT
+ 2 pts
+ 7 %
2002 to 2003 Achievements
+ 2 ptsEBIT margin Improvementexcl. special and one time items 02/03
+ 4 %Comparable Growth
Q1 03 to Q1 04 Achievements
Year-on-Year Improvement
![Page 5: Philips Medical Systems Progress Report€¦ · associated Imaging Centers Hospitals less than than 125 beds and unassociated Imaging Centers The Strategic Business segment represents](https://reader035.vdocument.in/reader035/viewer/2022070720/5edfb87dad6a402d666b0a88/html5/thumbnails/5.jpg)
Medical Systems 5
Supply Chain Improvements
Equipment warehouses in North America
1
21
5
0
5
10
15
20
25
30
2003 FC2004 TARGET
Equipment Direct Deliveries as % Sales (world)
59%
80%
26%32%
0%10%20%30%40%50%60%70%80%90%
100%
2002 2003 FC2004 TARGET
![Page 6: Philips Medical Systems Progress Report€¦ · associated Imaging Centers Hospitals less than than 125 beds and unassociated Imaging Centers The Strategic Business segment represents](https://reader035.vdocument.in/reader035/viewer/2022070720/5edfb87dad6a402d666b0a88/html5/thumbnails/6.jpg)
Medical Systems 6
Net Capital turnover goes up
Net Capital Turnover
3,9
5,0
2,93,7
0123
456
2002 2003 FC 2004 TARGET
Net Capital = Capital excluding Goodwill
![Page 7: Philips Medical Systems Progress Report€¦ · associated Imaging Centers Hospitals less than than 125 beds and unassociated Imaging Centers The Strategic Business segment represents](https://reader035.vdocument.in/reader035/viewer/2022070720/5edfb87dad6a402d666b0a88/html5/thumbnails/7.jpg)
Medical Systems 7
IT spending as % Sales
3.0%
4.9%4.4%
0%
2%
4%
6%
8%
2003 FC2004 Target
IT
Number of ERP systems
9
1
24
10
0
5
10
15
20
25
30
2002 2003 FC2004 Target
![Page 8: Philips Medical Systems Progress Report€¦ · associated Imaging Centers Hospitals less than than 125 beds and unassociated Imaging Centers The Strategic Business segment represents](https://reader035.vdocument.in/reader035/viewer/2022070720/5edfb87dad6a402d666b0a88/html5/thumbnails/8.jpg)
Medical Systems 8
Financing
Total Value of Financed deal in US (indexed)
191
250
100143
0
50
100
150
200
250
300
2002 2003 FC 2004 Target
• North America reaching industry levels – in combination with the
“Diamond Select” trade-in program
• Europe Finance ventures agreement signed in May with Société Générale – Starting in 6 countries
France, Germany, Italy, UK, Netherlands, Spain
– EUR 8 mln in deals signed / funded
• Asia to come next
30% average growth
![Page 9: Philips Medical Systems Progress Report€¦ · associated Imaging Centers Hospitals less than than 125 beds and unassociated Imaging Centers The Strategic Business segment represents](https://reader035.vdocument.in/reader035/viewer/2022070720/5edfb87dad6a402d666b0a88/html5/thumbnails/9.jpg)
Medical Systems 9
Building Integrated Supply Base
No. of Suppliers (80 % of spend)
020406080
100120140160
2003 FC2004 TARGET
Supplier Managed Inventory (%)
01020304050607080
2003 FC2004 TARGET
![Page 10: Philips Medical Systems Progress Report€¦ · associated Imaging Centers Hospitals less than than 125 beds and unassociated Imaging Centers The Strategic Business segment represents](https://reader035.vdocument.in/reader035/viewer/2022070720/5edfb87dad6a402d666b0a88/html5/thumbnails/10.jpg)
Medical Systems 10
Last 6 months show positive trend
Total
Asia Pacific
Europe, ME & Africa
Americas
6 months Trend
2003 Trend
Product Line
MonitoringTotal
USMIT
NMMRCTX-ray
6 months Trend
2003 Trend
Product Line
Global Product LinesWorld by Region
Sources – NEMA, various European studies and estimates
We drive to gain market share
![Page 11: Philips Medical Systems Progress Report€¦ · associated Imaging Centers Hospitals less than than 125 beds and unassociated Imaging Centers The Strategic Business segment represents](https://reader035.vdocument.in/reader035/viewer/2022070720/5edfb87dad6a402d666b0a88/html5/thumbnails/11.jpg)
Medical Systems 11
Philips MedicalProgress Report
• Seven consecutive quarters of improvement
• Building the future – Innovation• Building the future – Customers• Where do we go from here
![Page 12: Philips Medical Systems Progress Report€¦ · associated Imaging Centers Hospitals less than than 125 beds and unassociated Imaging Centers The Strategic Business segment represents](https://reader035.vdocument.in/reader035/viewer/2022070720/5edfb87dad6a402d666b0a88/html5/thumbnails/12.jpg)
Medical Systems 12
X-ray – FD20 with large detector
![Page 13: Philips Medical Systems Progress Report€¦ · associated Imaging Centers Hospitals less than than 125 beds and unassociated Imaging Centers The Strategic Business segment represents](https://reader035.vdocument.in/reader035/viewer/2022070720/5edfb87dad6a402d666b0a88/html5/thumbnails/13.jpg)
Medical Systems 1322
Cardiovascular X-ray with 250 x finer details
5 years ago.. Now
![Page 14: Philips Medical Systems Progress Report€¦ · associated Imaging Centers Hospitals less than than 125 beds and unassociated Imaging Centers The Strategic Business segment represents](https://reader035.vdocument.in/reader035/viewer/2022070720/5edfb87dad6a402d666b0a88/html5/thumbnails/14.jpg)
Medical Systems 14
MR – Achieva 3T
![Page 15: Philips Medical Systems Progress Report€¦ · associated Imaging Centers Hospitals less than than 125 beds and unassociated Imaging Centers The Strategic Business segment represents](https://reader035.vdocument.in/reader035/viewer/2022070720/5edfb87dad6a402d666b0a88/html5/thumbnails/15.jpg)
Medical Systems 15
MR with15 x more specifity and scan speed
5 years ago.. Now
![Page 16: Philips Medical Systems Progress Report€¦ · associated Imaging Centers Hospitals less than than 125 beds and unassociated Imaging Centers The Strategic Business segment represents](https://reader035.vdocument.in/reader035/viewer/2022070720/5edfb87dad6a402d666b0a88/html5/thumbnails/16.jpg)
Medical Systems 16
CT – Brillance with up to 40 slices
![Page 17: Philips Medical Systems Progress Report€¦ · associated Imaging Centers Hospitals less than than 125 beds and unassociated Imaging Centers The Strategic Business segment represents](https://reader035.vdocument.in/reader035/viewer/2022070720/5edfb87dad6a402d666b0a88/html5/thumbnails/17.jpg)
Medical Systems 17
CT Competitive Racefrom Follower to an Industry Leader
0
5
10
15
20
25
30
35
40
1998 1999 2000 2001 2002 2003 2004
Competition
Philips Medical
CT /No. of Slices/ Launch Year with FDA approval and clinical data
Focus now moving to - clinical benefits - upgradability- computer aided
diagnostic tools
![Page 18: Philips Medical Systems Progress Report€¦ · associated Imaging Centers Hospitals less than than 125 beds and unassociated Imaging Centers The Strategic Business segment represents](https://reader035.vdocument.in/reader035/viewer/2022070720/5edfb87dad6a402d666b0a88/html5/thumbnails/18.jpg)
Medical Systems 18
CT with 35 x scan speed, 3X specificity
5 years ago.. Now 3D
![Page 19: Philips Medical Systems Progress Report€¦ · associated Imaging Centers Hospitals less than than 125 beds and unassociated Imaging Centers The Strategic Business segment represents](https://reader035.vdocument.in/reader035/viewer/2022070720/5edfb87dad6a402d666b0a88/html5/thumbnails/19.jpg)
Medical Systems 19
Ultrasound – iU22 with voice control
![Page 20: Philips Medical Systems Progress Report€¦ · associated Imaging Centers Hospitals less than than 125 beds and unassociated Imaging Centers The Strategic Business segment represents](https://reader035.vdocument.in/reader035/viewer/2022070720/5edfb87dad6a402d666b0a88/html5/thumbnails/20.jpg)
Medical Systems 20
Cardiac Ultrasound with 5 x Improvement in Signal to Noise and Scan Time
2 years ago.. Now – Live 3D
![Page 21: Philips Medical Systems Progress Report€¦ · associated Imaging Centers Hospitals less than than 125 beds and unassociated Imaging Centers The Strategic Business segment represents](https://reader035.vdocument.in/reader035/viewer/2022070720/5edfb87dad6a402d666b0a88/html5/thumbnails/21.jpg)
Medical Systems 21
Nuclear Medicine PET-CT with 16-slice CT
![Page 22: Philips Medical Systems Progress Report€¦ · associated Imaging Centers Hospitals less than than 125 beds and unassociated Imaging Centers The Strategic Business segment represents](https://reader035.vdocument.in/reader035/viewer/2022070720/5edfb87dad6a402d666b0a88/html5/thumbnails/22.jpg)
Medical Systems 22
Progress in Molecular Imaging…and Animal Imaging …
... and experimental Hybrid Imaging …
to expedite Clinical Molecular Imaging
From agent discovery ..
![Page 23: Philips Medical Systems Progress Report€¦ · associated Imaging Centers Hospitals less than than 125 beds and unassociated Imaging Centers The Strategic Business segment represents](https://reader035.vdocument.in/reader035/viewer/2022070720/5edfb87dad6a402d666b0a88/html5/thumbnails/23.jpg)
Medical Systems 23
Launching a new Molecular Imaging platform…
• First open PET-CT
• Launching an unique SPECT-CT
![Page 24: Philips Medical Systems Progress Report€¦ · associated Imaging Centers Hospitals less than than 125 beds and unassociated Imaging Centers The Strategic Business segment represents](https://reader035.vdocument.in/reader035/viewer/2022070720/5edfb87dad6a402d666b0a88/html5/thumbnails/24.jpg)
Medical Systems 24
…To develop new Molecular Imaging agentswith Top Academia and highly innovative start-ups
Oncology / CV
Oncology / CV
Oncology / CV / Neuro
CV / Oncology
CV / Oncology / NeuroStanfordStanford
Washington UniversityWashington University
Johns HopkinsJohns Hopkins
NIH/NCINIH/NCI
U of WashingtonU of Washington
OncologySloan KetteringSloan Kettering
MD AndersonMD Anderson Oncology
Image Optimization
Oncology / CV
CV / OncologyKereosKereos
TheseusTheseus
CytogenCytogen
University of BordeauxUniversity of Bordeaux Gene Therapy
![Page 25: Philips Medical Systems Progress Report€¦ · associated Imaging Centers Hospitals less than than 125 beds and unassociated Imaging Centers The Strategic Business segment represents](https://reader035.vdocument.in/reader035/viewer/2022070720/5edfb87dad6a402d666b0a88/html5/thumbnails/25.jpg)
Medical Systems 25
PMS – Renewing Product PortfolioTotal R&D investment, indexed. 2002 = 100
0
20
40
60
80
100
120
2002 2003 2004
Support
Life CycleManagement
Evolutionary
New Platform
Breakthrough
![Page 26: Philips Medical Systems Progress Report€¦ · associated Imaging Centers Hospitals less than than 125 beds and unassociated Imaging Centers The Strategic Business segment represents](https://reader035.vdocument.in/reader035/viewer/2022070720/5edfb87dad6a402d666b0a88/html5/thumbnails/26.jpg)
Medical Systems 26
PMS – Renewing Product Portfolio % Revenues based on products < 2 yrs old
40%45%
63%
72%
2002 2003 2004 FC Target
New product is defined as a product based on a new hardware platform or a product with a significant increased in functionality, or cost-per-function improvement
From 2002 to 2005 major portfolio
renewal in Ultrasound, CMS,
CV and GXR.
![Page 27: Philips Medical Systems Progress Report€¦ · associated Imaging Centers Hospitals less than than 125 beds and unassociated Imaging Centers The Strategic Business segment represents](https://reader035.vdocument.in/reader035/viewer/2022070720/5edfb87dad6a402d666b0a88/html5/thumbnails/27.jpg)
Medical Systems 27
Software
BiometriXFD plates
FIMIDisplays
Flat Detectors
Collimators
Digital Image Handling
Image Inten-sifier / TV
CommonHW
Components
LRSTable Tops
Generators
More to come …
![Page 28: Philips Medical Systems Progress Report€¦ · associated Imaging Centers Hospitals less than than 125 beds and unassociated Imaging Centers The Strategic Business segment represents](https://reader035.vdocument.in/reader035/viewer/2022070720/5edfb87dad6a402d666b0a88/html5/thumbnails/28.jpg)
Medical Systems 28
Improving Customer Support
Bringing Customer Satisfactionto the next level:• Increase system uptime • Reduce service delivery costs• Platform for future
value-added services
0%
20%
40%
60%
80%
100%
Today FC 2005 Target
% of eligible systemsconnected
Roll out of Remote Services Network
![Page 29: Philips Medical Systems Progress Report€¦ · associated Imaging Centers Hospitals less than than 125 beds and unassociated Imaging Centers The Strategic Business segment represents](https://reader035.vdocument.in/reader035/viewer/2022070720/5edfb87dad6a402d666b0a88/html5/thumbnails/29.jpg)
Medical Systems 29
Philips MedicalProgress Report
• Seven consecutive quarters of improvement
• Building the future - Innovation• Building the future – Customers• Where do we go from here
![Page 30: Philips Medical Systems Progress Report€¦ · associated Imaging Centers Hospitals less than than 125 beds and unassociated Imaging Centers The Strategic Business segment represents](https://reader035.vdocument.in/reader035/viewer/2022070720/5edfb87dad6a402d666b0a88/html5/thumbnails/30.jpg)
Medical Systems 30
Ledford Distribution Channel
Full-line Account Management
Strategic Business
Academic Medical Centers apx. 75 accounts• Teaching Hospitals, Research Opportunities• Reference sites - Early AdoptersLarge IDN’S Commercial Customer apx. 350 accounts• Non Teaching - Integrated Administration• Early Adopters - Cash Cows of the IndustryZone and Regional Influence Accounts apx. 50 accounts• Large Regional Influencers - 1-3 Hospitals• Early AdoptersNew Construction Customers apx. 7B annual market• Specialty facilities or replacement,- Willing to work with a single vendor
Hospitals greater than 125 beds and associated Imaging Centers
Hospitals less than than 125 beds and unassociated Imaging Centers
The Strategic Business segment represents a significant opportunity for Philips N.A. to grow and establish critical relationships in this stable and profitable segment.
North American Market is Segmented by Size, Profitability, and Market Influence
![Page 31: Philips Medical Systems Progress Report€¦ · associated Imaging Centers Hospitals less than than 125 beds and unassociated Imaging Centers The Strategic Business segment represents](https://reader035.vdocument.in/reader035/viewer/2022070720/5edfb87dad6a402d666b0a88/html5/thumbnails/31.jpg)
Medical Systems 31
>70% of the US top hospitals have Philips in Cardiology
Source: US News and World Report
![Page 32: Philips Medical Systems Progress Report€¦ · associated Imaging Centers Hospitals less than than 125 beds and unassociated Imaging Centers The Strategic Business segment represents](https://reader035.vdocument.in/reader035/viewer/2022070720/5edfb87dad6a402d666b0a88/html5/thumbnails/32.jpg)
Medical Systems 32
Philips MedicalProgress Report
• Seven consecutive quarters of improvement
• Building the future – Innovation• Building the future – Customers• Where do we go from here
![Page 33: Philips Medical Systems Progress Report€¦ · associated Imaging Centers Hospitals less than than 125 beds and unassociated Imaging Centers The Strategic Business segment represents](https://reader035.vdocument.in/reader035/viewer/2022070720/5edfb87dad6a402d666b0a88/html5/thumbnails/33.jpg)
Medical Systems 33
Our Mission
To help improve people’s livesby healthcare technology
![Page 34: Philips Medical Systems Progress Report€¦ · associated Imaging Centers Hospitals less than than 125 beds and unassociated Imaging Centers The Strategic Business segment represents](https://reader035.vdocument.in/reader035/viewer/2022070720/5edfb87dad6a402d666b0a88/html5/thumbnails/34.jpg)
Medical Systems 34
Remove barriers to the best careNot having to: • see the doctor to be seen• wait for an ambulance to save a life• be in the hospital to see the patient• delay a decision waiting for
information• wait to be sick to be healed• compromise Clinical Excellence
to save costs
Our Vision: “Healthcare without Boundaries”
![Page 35: Philips Medical Systems Progress Report€¦ · associated Imaging Centers Hospitals less than than 125 beds and unassociated Imaging Centers The Strategic Business segment represents](https://reader035.vdocument.in/reader035/viewer/2022070720/5edfb87dad6a402d666b0a88/html5/thumbnails/35.jpg)
Medical Systems 35
Focus on the Care Cycle
Information &Decision supportOperating room
MonitoringImaging
Operating roomMonitoringImaging
IntensiveCare unitMonitoring
IntensiveCare unitMonitoring
Step downfacility
Monitoring
Step downfacility
Monitoring
HomeMonitoringHome
MonitoringPre-Hospital/Ambulance
Monitoring
Pre-Hospital/Ambulance
Monitoring
DiagnosticsImaging
DiagnosticsImaging
Treatment
Follow Up
Diagnostics
Euro 210 billion market
Euro 10 billion marketEuro 80 billion market
Market size for medical devices and equipment
![Page 36: Philips Medical Systems Progress Report€¦ · associated Imaging Centers Hospitals less than than 125 beds and unassociated Imaging Centers The Strategic Business segment represents](https://reader035.vdocument.in/reader035/viewer/2022070720/5edfb87dad6a402d666b0a88/html5/thumbnails/36.jpg)
Medical Systems 36
PMS Strategic Priorities
• Secure Previous Investments
• Strengthen Current Portfolio
• Expand the BusinessSTRENGTHEN
CURRENT PORTFOLIO
EXPAND
SECURE PREVIOUS INVESTMENTS
![Page 37: Philips Medical Systems Progress Report€¦ · associated Imaging Centers Hospitals less than than 125 beds and unassociated Imaging Centers The Strategic Business segment represents](https://reader035.vdocument.in/reader035/viewer/2022070720/5edfb87dad6a402d666b0a88/html5/thumbnails/37.jpg)
Medical Systems 37
Summary
• Seven consecutive quarters of improvement– financials, innovation, customer relationships & supply chain
• Will continue on this path to 14 % and beyond– significant & quantified opportunities still ahead
• Next step expansion is also a path – stay focused on improving care cycle– build on existing strengths of Medical and Philips– differentiate from competition
Deliver on commitment, focused on growthDeliver on commitment, focused on growth
![Page 38: Philips Medical Systems Progress Report€¦ · associated Imaging Centers Hospitals less than than 125 beds and unassociated Imaging Centers The Strategic Business segment represents](https://reader035.vdocument.in/reader035/viewer/2022070720/5edfb87dad6a402d666b0a88/html5/thumbnails/38.jpg)