Q2 2021 results

Amsterdam, July 26, 2021

Philips delivers Q2 sales of EUR 4.2 billion, with 9% comparable sales growth; net income amounts to EUR 153 million and Adjusted EBITA margin improves 280 basis points to 12.6%; company announces EUR 1.5 billion share buyback program

  • Group sales increased to EUR 4.2 billion, with 9% comparable sales growth
  • Comparable order intake decreased 15%, with strong double-digit growth in the Diagnosis & Treatment businesses and a decline in the Connected Care businesses on the back of COVID-19-related 167% growth in Q2 2020
  • Income from continuing operations decreased to EUR 65 million due to a EUR 250 million provision related to field actions to address a component quality issue. Income from continuing operations was EUR 195 million in Q2 2020.
  • Adjusted EBITA increased to EUR 532 million, or 12.6% of sales, compared to EUR 390 million, or 9.8% of sales, in Q2 2020
  • Operating cash flow amounted to EUR 332 million, compared to EUR 446 million in Q2 2020
  • Free cash flow was EUR 167 million, compared to EUR 212 million in Q2 2020
  • Our products and solutions improved the lives of 1.63 billion people worldwide in Q2 2021, an increase of 140 million lives year-on-year. Reflecting our efforts to expand access to care, this figure includes 157 million lives improved in underserved communities, compared to 122 million in Q2 2020.
  • Circular revenues amounted to 15.0% of sales, in line with Q2 2020.
  • Through our supplier sustainability engagement program we improved the lives of 370,000 workers in the supply chain, reducing the risk of injury in the workplace, improving labor conditions, and lowering the environmental impact of our supply partners’ operations.
  • Some 100 public health facilities in Kenya are live on a remote equipment monitoring solution from our Connected Primary Care solutions venture, as part of a project of Unicef and Philips Foundation to measure the impact of equipment availability and uptime.
  • The Krammer windfarm, from which the Dutch wind consortium (Nouryon, DSM, Google and Philips) source renewable electricity, has generated 1 Terawatt since it came into operation, thereby avoiding 450,000 tons of CO2 – equivalent to the annual carbon sequestration of more than 13 million medium-sized oak trees.
Strategic partnerships

Enhancing the delivery of critical care

In China, Philips signed a contract with Gansu Provincial Maternity and Child Care Hospital to streamline and advance the delivery of critical care across multiple departments of the hospital. Philips will provide its advanced critical care information system, patient monitoring solutions and diagnostic cardiology solutions.
Strategic partnerships

Partnering with Elekta to advance cancer care

Building on their successful cooperation in MR-guided adaptive radiation therapy, Philips and Elekta deepened the partnership to advance personalized cancer care through precision oncology solutions to deliver more precise therapy, shorter treatment times, and lower cost of care.
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Diagnostic imaging

Further expanding our CT portfolio

Philips introduced the Spectral CT 7500 system, which delivers high-quality spectral images for a broad patient base, including cardiac, pediatric and bariatric patients, further expanding the company’s comprehensive CT portfolio, which comprises spectral and conventional CT systems, as well as radiation oncology CT systems, and advanced informatics and services.
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Image-guided therapy

Innovative mobile interventional system

Philips launched IntraSight Mobile, which offers users in hospitals and office-based labs the integration, flexibility and affordability of a single mobile system for intravascular imaging, physiology measurements and co-registration for seamless workflows and enhanced patient care. Building on the success of IntraSight, the launch will further reinforce Philips’ leading position in image-guided therapy.
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Image-guided therapy devices

Elevating the standard of care

Philips announced progress on several clinical studies including the positive two-year clinical study results for the Tack Endovascular System for dissection repair, the first patient enrollment in the DEFINE GPS multicenter study to further drive the adoption of iFR for percutaneous coronary interventions based on clinical evidence, and the start of the WE-TRUST multicenter stroke study to shorten treatment times by identifying, planning and treating ischemic stroke patients in the interventional suite. Moreover, Philips announced the first structural heart repair procedure at Mayo Clinic using its new 3D intracardiac echocardiography catheter VeriSight Pro.
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Patient monitoring

Enabling continuous patient monitoring

Philips introduced its integrated Interventional Hemodynamic System with the portable Patient Monitor IntelliVue X3, providing advanced vital signs measurements at the tableside in the interventional suite and continuous monitoring across care settings. Uninterrupted patient monitoring can help to improve clinical decision making and timely detection of potential adverse events at every stage.
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Oral healthcare

Technology improving oral health

The global launch of Philips’ most advanced electric toothbrush, the Sonicare 9900 Prestige, was well received, with an average 4.7 (out of 5) star rating by consumers. The premium electric toothbrush leverages AI to optimize the user’s brushing technique, ensuring full coverage of their teeth, and instills brushing habits that improve oral health.
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Male grooming

Innovative shaver launched in China

Expanding the company’s leading male grooming portfolio, Philips introduced the Shaver Series 9000 with SkinIQ technology in China. The premium shaver leverages AI and sensors to offer a personalized shave tailored to each unique skin and hair type. It will also be launched in North America and Europe in the second half of the year.
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