Philips Medical Systems Progress Report€¦ · associated Imaging Centers Hospitals less than than...
Transcript of Philips Medical Systems Progress Report€¦ · associated Imaging Centers Hospitals less than than...
Philips Medical SystemsProgress Report
Jouko KarvinenPhilips Medical System
Analyst Meeting, Amsterdam June 9th 2004
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Philips MedicalProgress Report
• Seven consecutive quarters of improvement
• Building the future – Innovation• Building the future – Customers• Where do we go from here
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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
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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
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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
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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
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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
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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
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Building Integrated Supply Base
No. of Suppliers (80 % of spend)
020406080
100120140160
2003 FC2004 TARGET
Supplier Managed Inventory (%)
01020304050607080
2003 FC2004 TARGET
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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
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Philips MedicalProgress Report
• Seven consecutive quarters of improvement
• Building the future – Innovation• Building the future – Customers• Where do we go from here
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X-ray – FD20 with large detector
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Cardiovascular X-ray with 250 x finer details
5 years ago.. Now
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MR – Achieva 3T
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MR with15 x more specifity and scan speed
5 years ago.. Now
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CT – Brillance with up to 40 slices
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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
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CT with 35 x scan speed, 3X specificity
5 years ago.. Now 3D
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Ultrasound – iU22 with voice control
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Cardiac Ultrasound with 5 x Improvement in Signal to Noise and Scan Time
2 years ago.. Now – Live 3D
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Nuclear Medicine PET-CT with 16-slice CT
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Progress in Molecular Imaging…and Animal Imaging …
... and experimental Hybrid Imaging …
to expedite Clinical Molecular Imaging
From agent discovery ..
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Launching a new Molecular Imaging platform…
• First open PET-CT
• Launching an unique SPECT-CT
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…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
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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
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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.
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Software
BiometriXFD plates
FIMIDisplays
Flat Detectors
Collimators
Digital Image Handling
Image Inten-sifier / TV
CommonHW
Components
LRSTable Tops
Generators
More to come …
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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
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Philips MedicalProgress Report
• Seven consecutive quarters of improvement
• Building the future - Innovation• Building the future – Customers• Where do we go from here
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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
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>70% of the US top hospitals have Philips in Cardiology
Source: US News and World Report
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Philips MedicalProgress Report
• Seven consecutive quarters of improvement
• Building the future – Innovation• Building the future – Customers• Where do we go from here
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Our Mission
To help improve people’s livesby healthcare technology
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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”
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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
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PMS Strategic Priorities
• Secure Previous Investments
• Strengthen Current Portfolio
• Expand the BusinessSTRENGTHEN
CURRENT PORTFOLIO
EXPAND
SECURE PREVIOUS INVESTMENTS
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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