Ultrasound and Monitoring - Philipsimages.philips.com/is/content/PhilipsConsumer/Campaigns/... ·...
Transcript of Ultrasound and Monitoring - Philipsimages.philips.com/is/content/PhilipsConsumer/Campaigns/... ·...
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Ultrasound and Monitoring
Barbara FrancioseCEO Ultrasound and Monitoring
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New Ultrasound and Monitoring Business Group• A new business group to better
address:– Fast moving, high volume
businesses– Emerging markets
• Care cycle synergies
• Common business goal to accelerate growth – all businesses higher than PMS average EBIT
UltrasoundBusiness
Patient MonitoringBusiness
Cardiac CareBusiness
Ultrasound and MonitoringBusiness Group
We ship >150,000New Devices per year
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Ultrasound and Monitoring at Philips Medical
• Markets and Growth:– Ultrasound– Patient Monitoring– Cardiac Care
• Operational Excellence and Process Improvement
• Innovations in the Cycle of Care – New Markets
• Summary
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Total Ultrasound Equipment Market grows 4-5% CAGR, 2005 to 2009 – 3,6 billion Opportunity
30003097
3258
3430
3600
2700
2800
2900
3000
3100
3200
3300
3400
3500
3600
3700
2005 2006 2007 2008 2009
Source: Philips Internal
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Equipment Revenue + Service Revenue (€M projected)Ultrasound Service Market Expands
• Inclusion of Service increases 2009 projected market total to approx. €4,6 M
• Services continues to be more profitable than new equipment and Ultrasoundleads PMS in service margin
3000 3097 3258 3430 3600
810 840880
930970
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
2005 2006 2007 2008 2009
Equipment Services
Source: Philips Internal
Our Market Share increase helpsUltrasound margin contribution
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Ultrasound Growth Trending Up Significantly
12%
Annual Equipment SalesGrowth Rate 2005
Philips Regains USA Market Lead
26%Share
The Klein Report 2005
Grew in all markets worldwide
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Ultrasound 2005 Equipment Market Share –Gained two points share to 22% global
Philips 22%
GE 25%
Toshiba 14%
Aloka, Hitachi, Medison etc.
22%
Siemens 17%
Source: Philips Internal
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2120 2187 2246 2310 2378
0
500
1000
1500
2000
2500
3000
3500
2005 2006 2007 2008 2009
Total Monitoring Equipment Market grows 3% CAGR, 2005 to 2009 – € 2,4B Opportunity
Major growth areas in Monitoring:- Clinical Info Systems – CAGR (05-09) 9.5%
Source: Philips Internal
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Monitoring Total Market in 2009 is > € 3B Equipment + Service Revenue (€M projected)
2120 2187 2246 2310 2378
573 622 653 687 719
0
500
1000
1500
2000
2500
3000
3500
2005 2006 2007 2008 2009
Source: Philips Internal
Equipment Services
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Monitoring – Growing Momentum
4%
Annual Equipment SalesGrowth Rate 2005
Philips share in 2005 was 35%
11%Gain in 3 years
Source: Frost & Sullivan- PM 2002-2005 Market Update Studies
Double Digit Order growth globally
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Monitoring Market Share – Philips is the Clear Market Leader in 2005
Philips 35%
GE 26%
Other 21%
Spacelabs 4%Datascope 4%Welch Allyn 4%
Draeger 6%
Source: Absolute market size: Philips Internal% market share: Frost & Sullivan-PM 2005 Market Update Study, January 2006
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Cardiac Care Total Market (Resuscitation and Consumables)Equipment Revenue + Service Revenue (€M projected)
2504 2651 2790 2951 3130
391 456532
622727
0
500
1000
1500
2000
2500
3000
3500
4000
4500
2005 2006 2007 2008 2009
Source: Philips Internal
Equipment Services
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Cardiac Care – Great Device Growth in 2005
27%
Annual Equipment SalesGrowth Rate 2005
Resuscitation Market Share Growth 2005
7%Gain
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Cardiac Resuscitation Market Share
Equipment€643M
Total Market
Services€325M
Total Market
Medtronic 33%
Philips 31%Cardiac
SciencesOther
ZollCSA
Zoll
Other
diacnces
Philips 7%
Medtronic 48%
Source: 2005 public earnings reports
Needed to gain share in devices first,will now address Service Opportunity
SciencesCardiac
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Ultrasound and Monitoring at Philips Medical
• Markets and Growth
• Operational Excellence and Process Improvement
• Innovations in the Cycle of Care – New Markets
• Summary
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Process Improvement Continues within the New Ultrasound and Monitoring Business• Philips “fast transaction” processes
are optimized for unique customer needs
– 45,000 + transactions
• New Shared Service Groups in UM -reduced costs in Q&R, HR, Supply Chain
• Further outsourcing of commodity products to low cost countries and local/local collaborations
UltrasoundBusiness
Patient MonitoringBusiness
Cardiac CareBusiness
Ultrasound and MonitoringBusiness Group
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Innovation process is critical
• New Product Creation process concentrates oncustomer insights
• New mapping of clinical segments and price segmentsin each geography; one size does not fit all
• New business models with alliance, partnering,co-development, separate dedicated business units etc.
• Critical “design to cost” emphasis for each segment
New clinical innovation allowed five new Ultrasoundproducts and growth in all segments and all geographies
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Ultrasound and Monitoring Projecting Strongest Growth in Emerging Markets
4.0%
3.0%
8.50%
0.25%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
9.00%
CAGR (05-09)
USA Japan China UK, FR, DE Source: PMD Market Model Feb 2005
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Emerging Market Growth in Ultrasound / Monitoring Requires Operational Excellence• Local for local Acquisitions in lower cost
countries to keep costs down and respond to local customer’s needs
• Outsourced commodity transducers and high volume production
• New Partnerships and Alliances to reduce development costs for emerging markets innovation – new business models
Along with x-ray, ultrasound and basic patient monitoring IS emerging medicine
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Ultrasound and Monitoring at Philips Medical
• Markets and Growth
• Operational Excellence and Process Improvement
• Innovations in the Cycle of Care – New Markets
• Summary
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HomeMonitoringHome
MonitoringPre-Hospital/Ambulance
Monitoring/Treatment
Pre-Hospital/Ambulance
Monitoring/Treatment
DiagnosticsCardiac ImagingDiagnosticsCardiac Imaging
Operating roomImaging/Monitoring
Operating roomImaging/Monitoring
IntensiveCare unitMonitoring
IntensiveCare unitMonitoring
Step downfacility
Monitoring
Step downfacility
Monitoring
Information &Decision support
Follow Up
Diagnostics
Treatment
Pre-Hospital/ER
Imaging
Pre-Hospital/ER
Imaging
Intervention lab EP/Cardiac Cath
Intervention lab EP/Cardiac Cath
Physician OfficeMonitoring
Physician OfficeMonitoring
Many Unique Touch Points in Cardiology Care Cycle
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Monitoring Innovation Spans Care Continuum
Family approach
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SureSigns Patient Monitoring and Ultrasoundfor low end and emerging markets
• Uncomplicated and easy to use for novice users
• Addressing a wide range of care environments with Philips quality technology
• Represents our smallest market footprint today
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Compact Ultrasound is Growing Worldwide
• Responding to a wide range of applications in the care cycles :
– Anesthesiology
– Interventional labs
– Office environment in cardiac and OB/GYN
– Emergency or remote care
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Emergency Ultrasound in Pre-Hospital Markets
Emergency Ultrasound on Next Generation Advanced Life Supportbrings better remote care and transports key data to hospital
ALS and UltrasoundImaging on-site
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Innovation in Screening Markets– Cardiac TOPS for Athlete Screening and Monitoring
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Wireless ECG “Patch” in Trials during 2006
• Shortens hospital stay
• Improves care
• Reimbursable today
• Expands our cardiac careconsumable business
Wearable, wireless,records arrhythmias
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Additional Medical Sensor Innovation in the Future
Desired StateSingle multi-parameter wireless sensor
Current StateMultiple single-parameter tethered sensors
SpO2SpO2
Skin TempSkin Temp
ECG, Heart RateECG, Heart Rate
IBPIBP
Improves care, reduces costs, expands Philips consumables
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Ultrasound and Monitoring at Philips Medical
• Markets and Growth
• Operational Excellence and Process Improvement
• Innovations in the Cycle of Care – New Markets
• Summary
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The Last Three Years have been Quite Busy…
• Major Ultrasound Change Initiative started in 2003-integration effort
• Focus on customers andnew clinical innovation;five new products w/ growth all segments / geographies
• Gained market share,#1 in USA
• Expand Care Cycle Innovation
• Participate in Emerging Markets and Emerging Medicine
• Develop Compact, Wireless and other disruptive technologies
• Strengthening Services Business in Cardiac Resuscitation
2006 - 20092003 - 2006
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Summary – Three Things to remember about Ultrasound and Monitoring at Philips Medical
• Strong Businesses Today – still taking market share
• Accelerated growth plans – emerging markets, emergency medicine
• Will maintain > PMS average margins, develop stronger alliances and be part of M&A in our care cycles
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