Philips realigns the composition of its reporting segments
Amsterdam, the Netherlands – To further align its businesses with customer needs, Royal Philips (NYSE: PHG, AEX: PHIA), a global leader in health technology, today announced a realignment of its three reporting segments Diagnosis & Treatment, Connected Care & Health Informatics, and Personal Health.
The most notable changes are the shift of the Sleep & Respiratory Care business from the Personal Health segment to the renamed Connected Care segment and the shift of the Healthcare Informatics business from the Connected Care segment to the Diagnosis & Treatment segment. Moreover, recognizing the importance of, and investments in the Image-Guided Therapy businesses, their leader Bert van Meurs joins Philips’ Executive Committee, effective as of January 1, 2019.
Effective as of January 1, 2019, Philips’ reporting segments are:
Diagnosis & Treatment, which unites the businesses related to the promise of precision diagnosis and disease pathway selection, and the businesses related to image-guided, minimally invasive treatments. This segment comprises the Diagnostic Imaging, Ultrasound, and Healthcare Informatics businesses led by Rob Cascella, and the Image-Guided Therapy businesses led by Bert van Meurs.
Connected Care, which focuses on patient care solutions, advanced analytics and patient and workflow optimization inside and outside the hospital, and aims to unlock synergies from integrating and optimizing patient care pathways, and leveraging provider-payer-patient business models. This segment comprises the Monitoring & Analytics, Therapeutic Care, Population Health Management, and Sleep & Respiratory Care (including the Home Respiratory Care business) businesses led by Carla Kriwet.
Personal Health, which focuses on healthy living and preventative care. This segment comprises the Personal Care, Domestic Appliances, Oral Healthcare, and Mother & Child Care businesses led by Roy Jakobs.
Philips reaffirms its overall targets of 4-6% comparable sales growth and an Adjusted EBITA margin improvement of 100 basis points on average per year for the 2017–2020 period [1], and an improvement of the organic Return on Invested Capital (ROIC) to mid-to-high teens in 2020. The company expects to increase the annual free cash flow to above EUR 1.5 billion in 2020 [2].
Philips will provide further details on the changes as part of the presentation of its fourth quarter and full year 2018 results on January 29, 2019.
[1] Comparable sales exclude the effect of currency movements and acquisitions and divestments (changes in consolidation). Philips believes that comparable sales information enhances understanding of sales performance; Adjusted EBITA is defined as Income from operations (EBIT) excluding amortization of acquired intangible assets, impairment of goodwill and other intangible assets, restructuring charges, acquisition-related costs and other one-time charges and gains.
[2] Free cash flow adjusted for one-time pension contributions and significant litigation.
EN
Philips appoints Bert van Meurs as member of the Executive Committee
Amsterdam, the Netherlands – Royal Philips (NYSE: PHG, AEX: PHIA), a global leader in health technology, today announced the appointment of Bert van Meurs as a new member of the Executive Committee, reporting to Philips CEO Frans van Houten. The appointment is effective as of January 1, 2019.
Bert van Meurs leads Philips’ EUR 2+ billion Image-Guided Therapy businesses that offer integrated solutions comprising interventional imaging systems, smart catheters, planning and navigation software, and services with the aim to improve minimally invasive treatments. Driven by the benefits of such treatments for patients and care providers, including reduced patient trauma and shorter recovery times, the EUR 8+ billion market exhibits high-single-digit growth and represents a key growth opportunity for Philips.
“The appointment of Bert van Meurs as a new member of the Executive Committee reflects the growth of our Image-Guided Therapy businesses,” said Frans van Houten, CEO of Royal Philips. “To strengthen our leadership in this fast growing market, we have significantly invested in our R&D programs which resulted in the launch of the very successful Azurion next-generation image-guided therapy platform, and the acquisitions of Volcano, Spectranetics and most recently EPD Solutions, which enabled the expansion into smart devices such as diagnostic and therapeutic catheters.”
Bert van Meurs (Dutch, 1961) joined Philips in 1985 and has held various leadership positions in research & development, clinical science, and marketing & sales in Europe and Asia. Through 2004 – 2012, he was the general manager of the global Cardio/Vascular X-ray business, where he led the business to sustained market leadership and expansion into growth geographies such as India. In 2013, he became the Chief Marketing Officer of the Imaging Systems business, where he drove the transformation from a product to a solutions focus. Since 2015, he has been leading the Image-Guided Therapy businesses driving the portfolio expansion from systems, software and services to also include smart devices, combined with new recurring revenue business models. Bert van Meurs holds a master’s degree in Physics from the University of Utrecht and a degree in Business Marketing from the Technical University Eindhoven.
