2022 annual results

Committed to improving people's health and well-being

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2022 was a very disappointing year for Philips and its stakeholders, and we are taking firm action to strengthen patient safety and quality, improve our execution and step up performance with urgency in 2023.

Roy Jakobs

CEO Royal Philips

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Philips 2022 results

The year at a glance

17.8

billion
EUR

sales

1.81

billion

lives improved

~100

new strategic customer partnerships

77%

employee engagement score

18%

circular revenues

~90%

production complete for Respironics recall

View our charts and historical results

Our strategy and businesses

As a focused leader in health technology, we aim to create value with sustainable impact based on focused organic growth and scalable innovation, with improved execution as key value driver.

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Customer impact and innovation

The technological and business model innovation that Philips brings to healthcare – often as part of long-term partnerships – is critical, making care delivery more convenient and sustainable.

Philips receives FDA 510(k) clearance for Ultrasound Compact system to optimize portability and performance

Philips advances AI-powered diagnostic systems and transformative workflow solutions at RSNA 2022

Philips highlights latest advances in stroke care at the 2022 World Stroke Congress

Philips introduces new cloud-enabled enterprise imaging informatics and analytics solutions at HIMSS22

Philips showcases connected, scalable health informatics solutions at HIMSS22

Baptist Health’s Miami Cardiac & Vascular Institute successfully treats its first cardiac patients with new 3D Philips Intracardiac Echocardiography Catheter

Philips expands network of clinical partners to set new standard of care for the early diagnosis and treatment of lung cancer

Philips and Prisma Health sign multi-year, long-term strategic partnership to innovate healthcare across the enterprise and unlock the power of patient data

Environmental, Social and Governance

At Philips, we are partnering with our stakeholders to drive environmental, social and governance priorities and make a global impact.

Download our ESG performance Country Activity & Tax Report

Progress towards our goals

Lives improved

At Philips, we are striving to make the world healthier and more sustainable through innovation, with the goal of improving the lives of 2.5 billion people a year by 2030. This includes improving access to care in underserved communities for 400 million people a year.

To ensure we remain on track to achieve this goal, we have developed a model, audited externally, that tells us how many lives have been improved by our products and solutions in a given year.

Download our methodology

1.81

2.5

Lives improved

202

400

Lives improved in underserved healthcare communities

100% sales from green products and solutions ¹

72%

25% sales from circular products and solutions

18%

75% operations powered by renewable energy

77%

95% circular materials management ²

91%

100% industrial sites sending zero waste to landfill

100%

5% reduction in water consumption from 2019 level

All data points refer to 2022
¹ We will design 100% of our products and services in line with EcoDesign requirements by 2025² Recycling, reuse and circular materials management of the total used materials

Environmental sustainability targets

Reflecting our commitment to SDG 12 (Sustainable consumption and production) and SDG 13 (Climate action), we have set specific targets – to be achieved by 2025 – to reduce our environmental impact and help fight climate change. Here you can see how we’re progressing towards these goals.

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Sustainability highlights

In 2022, we made further advances in the focal areas of climate action, circular economy and access to care.

Philips was again recognized with the prestigious ‘A’ score for its climate action leadership by global environmental non-profit CDP (Carbon Disclosure Project)

Philips becomes the first health technology company to have its entire value-chain CO₂ emissions reduction targets approved by the Science Based Targets initiative (SBTi)

Philips again receives high S&P Global Ratings evaluation for its ESG practices

Philips highest-scoring Dutch company in global reputation ranking

Philips Foundation and RAD-AID International embark on a multi-year cross-continental partnership to increase access to ultrasound services for 50 million people in low- and middle-income countries

Philips Human Rights Report 2022

Purpose in action – Why ESG matters to Philips

Charts and historical results

Statement of income

Profitability

Balance sheet

Cash flow

Key figures per share

Ratios

ESG

in millions of EUR	2020	2021	2022
Net cash provided by operating activities	2,511	1,629	(173)
Net capital expenditures	(876)	(729)	(788)
Free cash flow	1,635	900	(961)

	2020	2021	2022
Philips Group	14.0%	14.7%	6.3%

	2020	2021	2022
Philips Group	4.6%	1.8%	(4.98)%

	2020	2021	2022
Philips Group	10.5%	10.5%	11.8%

	2020	2021	2022
Philips Group	24:76	24:76	35:65

	2020	2021	2022
Diagnosis & Treatment	(2.3)%	8.1%	(0.7)%
Connected Care	21.6%	(22.6)%	(10.8)%
Personal Health	(6.2)%	8.8%	0.1%
Philips Group	2.9%	(1.2)%	(2.8)%

in millions of EUR	2020	2021	2022
Total tax contributions	3,381	4,090	3,469

in millions of EUR	2020	2021	2022
Corporate income tax paid	466	818	362
Customs duties	156	169	144
Value Added Tax	794	821	664
Payroll taxes	1,862	2,133	2,174
Other taxes	102	149	124

in millions of EUR	2020	2021	2022
Philips Group	39,627	28,512	12,344

in millions of EUR	2020	2021	2022
Diagnosis & Treatment	8,175	8,635	9,168
Connected Care	5,543	4,573	4,403
Personal Health	3,199	3,429	3,626
Other	396	519	629
Philips Group	17,313	17,156	17,827

in millions of EUR	2020	2021	2022
Diagnosis & Treatment	497	941	404
Connected Care	704	(722)	(2,246)
Personal Health	362	576	515
Other	(300)	(242)	(202)
Philips Group	1,264	553	(1,529)

in millions of EUR	2020	2021	2022
Diagnosis & Treatment	818	1,071	774
Connected Care	1,191	497	95
Personal Health	433	590	538
Other	(165)	(105)	(89)
Philips Group	2,277	2,054	1,318

in millions of EUR	2020	2021	2022
Philips Group	999	612	(1,618)

in millions of EUR	2020	2021	2022
Philips Group	1,195	3,323	(1,605)

as a of sales	2020	2021	2022
Diagnosis & Treatment	6.1%	10.9%	4.4%
Connected Care	12.7%	(15.8)%	(51.01)%
Personal Health	11.3%	16.8%	14.2%
Philips Group	7.3%	3.2%	(8.6)%

as a of sales	2020	2021	2022
Diagnosis & Treatment	10.01%	12.4%	8.4%
Connected Care	21.5%	10.9%	2.2%
Personal Health	13.5%	17.2%	14.8%
Philips Group	13.2%	12.0%	7.4%

in millions of EUR	2020	2021	2022
Total assets	27,713	30,961	30,688
Total liabilities	15,812	16,486	17,405
Group equity	11,901	14,475	13,283

in EUR	2020	2021	2022
Income from continuing operations attributable to shareholders per common share - diluted	1.08	0.67	(1.84)
Adjusted income from continuing operations attributable to shareholders per common share - diluted	1.74	1.65	0.96
Dividend distributed per common share	0.85	0.85	0.85

in EUR	2020	2021	2022
Share price at year-end	43.78	32.77	14.00
Price/earnings ratio (basic EPS)	40.17	48.90	0.00

	2020	2021	2022
Diagnosis & Treatment	32,193	32,390	32,904
Connected Care	15,866	17,751	16,673
Personal Health	10,253	10,134	9,319
Other	16,689	17,913	18,337
Philips Group	75,001	78,189	77,233

% positive score	2020	2021	2022
Philips Group	79	79	77

in % of total	2020	2021	2022
Philips Group	24	25	24

per 100 FTEs	2020	2021	2022
Diagnosis & Treatment	0.27	0.28	0.21
Connected Care	0.11	0.09	0.09
Personal Health	0.22	0.16	0.09
Other	0.06	0.12	0.08
Philips Group	0.12	0.16	0.11

per 100 FTEs	2020	2021	2022
Diagnosis & Treatment	0.45	0.53	0.41
Connected Care	0.31	0.31	0.19
Personal Health	0.30	0.24	0.27
Other	0.16	0.21	0.17
Philips Group	0.24	0.29	0.23

	2020	2021	2022
Philips Group	1	0	0

in millions of EUR	2020	2021	2022
Diagnosis & Treatment	6,373	6,702	7,245
Connected Care	3,586	2,547	2,252
Personal Health	2,706	2,846	3,278
Philips Group	12,665	12,095	12,775

as a % of total sales	2020	2021	2022
Diagnosis & Treatment	78.0	77.6	79.0
Connected Care	64.7	55.7	51.1
Personal Health	84.6	83.0	90.4
Philips Group	73.2	70.5	71.7

in millions of EUR	2020	2021	2022
Diagnosis & Treatment	122	96	93
Connected Care	51	32	31
Personal Health	80	65	40
Other	2	4	4
Philips Group	255	197	168

in kilotonnes CO₂-equivalent	2020	2021	2022
Logistics	415	417	327
Business travel	70	72	86
Non-industrial operations	15	14	11
Manufacturing	18	16	14

in kilotonnes CO₂-equivalent	2020	2021	2022
Scope 1	30	27	23
Scope 2 (market based)	3	3	2
Scope 2 (location based)	173	177	167
Scope 3	485	489	413
Total (scope 1, 2 (market based), and 3)	518	519	438
Emissions compensated by carbon offset projects	518	519	438
Net operational carbon emissions in kilotonnes	0	0	0

in terajoules per million EUR sales	2020	2021	2022
Philips Group	0.030	0.031	0.028

in terajoules	2020	2021	2022
Diagnosis & Treatment	161.1	175.3	169.9
Connected Care	63.6	44.7	41.5
Personal Health	114.4	130.8	126.7
Philips Group	339.2	350.8	338.1

in thousands of m³	2020	2021	2022
Diagnosis & Treatment	286	337	310
Connected Care	116	119	111
Personal Health	221	247	257
Philips Group	623	703	678

in tonnes	2020	2021	2022
Philips Group	480	19	1

in %	2020	2021	2022
Philips Group	90	87	91

in kilos	2020	2021	2022
Diagnosis & Treatment	92	181	175
Connected Care	20	1,239	863
Personal Health	455	1,242	510
Philips Group	567	2,662	1,548

in tonnes	2020	2021	2022
Diagnosis & Treatment	44	42	38
Connected Care	3	3	2
Personal Health	32	33	37
Philips Group	79	78	77

as a % of all reporting organizations	2020	2021	2022
Philips Group	81	92	96

Creating value with sustainable impact

Based on the International Integrated Reporting Council framework, we use various resources to create value with sustainable impact for our stakeholders.

Download the overview

All holders of Philips securities can receive a hard copy of the complete annual audited financial statements free of charge by submitting a request to annual.report@philips.com