The Ultrasound and Monitoring Business
• Three fast moving, higher volume business units
• Care cycle and Emerging Market synergies
• Business goal to accelerate growth – all have strong market shares and high EBIT
UltrasoundBusiness
Patient MonitoringBusiness
Cardiac CareBusiness
Ultrasound and MonitoringBusiness Group
We ship >150,000 New Devices per year
Ultrasound and Monitoring at Philips Medical
• Markets and Share:– Ultrasound– Patient Monitoring– Cardiac Care
• Emerging Markets
• Care Cycle and Clinical Decision Support Expansions
• Summary
Monitoring - Total Market Opportunity of € 3.1B Equipment Revenue + Service Revenue (€M projected)
• 2010 projected market total approx. € 3.1B
• Growth in Emerging markets 6%, 2x rate of developed markets
• Expansion in SW systems and Clinical Decision Support
2140 2203 2274 2345 2422
642 661 682 703 727
0
500
1000
1500
2000
2500
3000
3500
4000
2006 2007 2008 2009 2010
Equipment ServicesSource: Philips Internal
3% CAGR
Monitoring – Slight Gain in 2006, more opportunity in EM
Source: Frost & Sullivan 2006 PM Market Update Study, Status: January 2007
Share of Developed Market
GE, 28%
Datascope, 6%
Spacelabs, 5%
Other, 17%
Drager (Siemens),
7%
Philips, 37%
Share of Emerging Market
Philips 15%
GE 18%
Spacelabs 2%
Drager (Siemens)
6%
Other 59%
Share of Total Market
Philips, 34%
GE, 26%
Other, 22%Sapcelabs,
5%
Datascope, 5%Drager (Siemens),
7%
3100 3255 3410 3590 3770
840 880 930 970 1020
0
1000
2000
3000
4000
5000
6000
2006 2007 2008 2009 2010Equipment Services
Ultrasound - Total Market Opportunity – € 4.8B Equipment Revenue + Service Revenue (€M projected)
• 2010 projected market approx. € 4.8B
• Includes Compact expansion
• Servicescontinues to be more profitable than equipment
4% CAGR
Source: Philips Internal
Philips 22%
GE 26%Toshiba 14%
Aloka, Hitachi, Medison etc.
22%
Siemens 16%
Philips 18%
GE 22%
Toshiba 17%
Aloka, Medison,
Mindray etc.30%
Siemens 13%
Philips 23%
GE 27%Toshiba 13%
Aloka, Hitachi, Medison etc.
20%
Siemens 17%
Source: Philips Internal
€ 3,100M
Share of Developed Market Share of Emerging Market
Share of Total Market
Gain in Radiology and Cardiology offset missing Compact Segment
Ultrasound – slight share increase in 2006
43%
42%
5% 3% 7%
GE SonoSite ZonareTerason Others
10%
90%
Cart Based Compact
Sonosite + GE control >85% of the market, pavingground for Philips future product introductions
Compact Market € 300M
Ultrasound - Compact Market grew to 10% in 2006
Source: Philips Internal
Cardiology19%
Radiology & Vascular
20%
SharedServices
8%
Women’sHealthcare
17%
EmergencyMedicine
19%
Anesthesiology6%
CriticalCare
4%
Other7% Cardiology
19%
Radiology & Vascular
20%
SharedServices
8%
Women’sHealthcare
17%
EmergencyMedicine
19%
Anesthesiology6%
CriticalCare
4%
Other7%
Projected Compact Ultrasound by DisciplineProjected CAGR 25% - € 800M total market in 2010
Ultrasound - Compact Adoption aligns with Philips Strengths
= Philips strengths
Source: Philips Internal
Supplies
ECG MgmtResuscitate
2731 2852 2995 3150 3322
456 532622
727850
0500
10001500200025003000350040004500
2006 2007 2008 2009 2010Equipment Services
Cardiac Care - Market Opportunity € 4.2B Equipment Revenue + Service Revenue (€M projected)
• 2010 projected market approx. € 4.2B
7% CAGR
Philips Supply Business addresses only 50% of market todaySource: Philips Internal
Philips27%
Zoll21%
Medtronic PhysioControl
35%
Cardiac Science
7%
Other10%
Philips26%
Zoll17%Medtronic
PhysioControl17%
Cardiac Science
1%
Other39%Philips
27%
Zoll22%
Cardiac Science
8%
Other8%
Medtronic PhysioControl
35%
Share of Emerging MarketShare of Developed Market
Share of Total Market
Cardiac Resuscitation – Gaining Market Share
Source: 2006 public earnings reports
Ultrasound and Monitoring at Philips Medical
• Markets and Share:– Ultrasound– Patient Monitoring– Cardiac Care
• Emerging Markets
• Care Cycle and Clinical Decision Support Expansion
• Summary
050
100150200250300350400450
2006 2007 2008 2009 2010
LatinIndiaChina
Source: Foster & Sullivan January 2007 report.Equipment only & includes Spot Check market
China alone will reach € 227M By 2010
Monitoring Emerging Market growing 6 – 7%
45%
26%
30%
19%
25%
55%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
China Global
System equipment: CT, MR, X-raySource:PMS MarketingWorking Group analysis
System Equipment - Market Segmentation
In China Mid/low End Products = 75% of MarketTypical for emerging markets
Low-end
Mid
High-end
Targeted R&Dfor
Low costGood Performance
Patient Centric
Inorganic growth thru Partnering and M&A in Brazil, China and India
UM - Organic expansion in Emerging Markets
HD3 – introduced late 2005,>3000 units to date
SureSigns and MP5, introduced in 2006, >4000 units to date
Ultrasound and Monitoring at Philips Medical
• Markets and Share:– Ultrasound– Patient Monitoring– Cardiac Care
• Emerging Markets
• Care Cycle and Clinical Decision Support Expansion
• Summary
Care Cycles within Ultrasound and Monitoring
• Preventative• Predictive• Diagnostic• Therapeutic
• Ubiquitous
Clinical Decision Support – Protocol Watch Clinical Goal: To Optimize the Care of Patients with Sepsis
• Early indication of the onset of sepsis
• Improve disease recognition and treatment
• Provide consistent clinical approach based on SSC driven protocols
Reducing the Door-to-Balloon time in Acute MI
Strategies for Reducing the Door-to-Balloon Time in Acute
Myocardial InfarctionNumber 22November 30, 2006Volume 355:2321-2329
New Campaign to ImproveDoor-To-Balloon Times Reflects a Rethinking of How Research IsTranslated Into Practice
Paramedics Activate Cath Lab for STEMI Patients in Some Areas
Only Philips Offers Complete Discovery-to-Balloon (D2B) Solution
EMS ED
Cath Lab
EMR/HISEmergencyDiagnosis
EmergencyTransportation
Diagnosis andTreatment
Treatment and Monitoring
Via Cell phone, Laptop or internet
Via Radio
Network
Prevention Diagnosis Treatment SurveillanceScreening Management
Patient Centric Care Cycles in Women’s Health
• Women’s healthcare needs change as they age
• Four opportunities relevant to “baby boomers”
– Heart disease– Breast cancer– Gynecology– Osteoporosis
Heart Disease is NOT just a Man’s Disease
• Heart disease - the # 1 killer in women (500,000 die each year of CVD versus 40,000 that die from breast cancer)
• Recent AHA survey - only 8% Primary-care Physicians knew heart disease kills more women than men each year, a fact since 1984
• Symptoms, tests and therapy are different for women; Philips will develop gender specific software and technology in this area
Philips strength in cardiologyis vital in Women’s Healthcare
Ultrasound and Monitoring at Philips Medical
• Markets and Share:– Ultrasound– Patient Monitoring– Cardiac Care
• Emerging Markets
• Care Cycle and Clinical Decision Support Expansion
• Summary
Summary – Ultrasound and Monitoring
• Strong Businesses Today –still taking market share
• Patient centric growth:– emerging markets– compact ultrasound– emergency medicine– women’s health care
• Saving lives, improving clinical care and adding new value to Philips
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