Q3 2018 results

Amsterdam, October 22, 2018

Philips reports Q3 sales of EUR 4.3 billion, with 4% comparable sales growth; net income from continuing operations increased 17% to EUR 307 million, and Adjusted EBITA margin increased 40 basis points to 13.2%

  • Sales in the quarter were EUR 4.3 billion, with comparable sales growth of 4%
  • Comparable order intake increased 11% compared to Q3 2017
  • Net income from continuing operations increased 17% to EUR 307 million, compared to EUR 263 million in Q3 2017
  • Adjusted EBITA margin improved by 40 basis points to 13.2% of sales, including a 60 basis points adverse currency impact, compared to 12.8% of sales in Q3 2017
  • Income from operations (EBIT) increased to EUR 451 million, compared to EUR 299 million in Q3 2017
  • Operating cash flow totaled EUR 265 million, compared to EUR 295 million in Q3 2017
  • Lives Improved came to 2.202 billion, an increase of 19 million year-on-year.
  • Scoring 81 out of 100 points overall, Philips came second in the Health Care Equipment & Services industry group of the 2018 Dow Jones Sustainability Index. This is the first year that we have been reclassified to this category, in line with our transformation to a focused health technology company.
  • Developed in collaboration with the Consortium for Affordable Medical Technologies (CAMTech) at Massachusetts General Hospital Global Health, the Philips Augmented Infant Resuscitator aims to reduce neonatal mortality, especially in parts of the world that are underserved in terms of healthcare.
  • Philips signed a memorandum of understanding with the United Nations Population Fund (UNFPA) to jointly develop programs aimed at improving the lives of 50 million women and girls by 2025 in countries where health challenges are most acute. Philips’ focus in the programs will be on enabling healthy pregnancies, safe deliveries and quality newborn care through integrated health services, in line with the United Nations resolution on universal health coverage (UHC).
  • Philips launched the Ingenia Ambition X 1.5T MR, which combines fully sealed BlueSeal magnet technology and workflow innovations for more productive, helium-free operations. The first commercial installation of the Ingenia Ambition X was recently completed at Spital Uster Hospital, a major provider of extended primary healthcare in the canton of Zurich, Switzerland.
  • Inspired by the European Commission’s recycled plastics pledge campaign, Philips has set itself an ambitious new target to use 7,600 tons of recycled plastics in 2025, measured against a baseline of 1,850 tons in 2017.
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Long-term strategic partnerships

Continuing Philips’ success in long-term strategic partnerships, the company signed six new agreements across the globe. Philips partnered with Children’s Health hospital in Dallas – one of the top pediatric hospitals in the US – to improve pediatric care with its patient monitoring and healthcare informatics solutions. In Australia, Philips announced its first two long-term strategic partnership agreements, which aim to support precision diagnosis and therapy and drive operational performance improvements across nine hospital sites.

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Advances in image-guided therapy

As a leader in image-guided therapy, Philips launched its EPIQ CVxi ultrasound system combined with the latest version of its unique EchoNavigator software specifically designed for minimally invasive structural heart repairs, a fast-growing image-guided therapy segment. Moreover, the adoption of Philips’ proprietary iFR technology reached a major milestone after its inclusion in the European Society of Cardiology’s updated guidelines for the assessment of coronary artery lesions.

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Diagnostic imaging innovation

Continuing the renewal of its diagnostic imaging portfolio, Philips launched the Ingenia Ambition X 1.5T MR with fully sealed BlueSeal magnet technology in the US. As an industry first, Ingenia Ambition X enables imaging departments to perform more productive, helium-free operations.

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Healthcare informatics partnership agreement

Building on its strengths in healthcare informatics, Philips entered into a multi-year partnership agreement with St. Andrew’s Toowoomba Hospital in Australia for the hospital-wide installation of Philips Tasy EMR. Philips will fully digitize the hospital’s entire care management processes and enable anytime, anywhere access to clinical analytics.

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High-end male grooming launch

Philips completely renewed the high-end range of its leading male grooming portfolio with the introduction of the Series 9000 Prestige shaver, which cuts facial hair feeling as close as a wet blade, while being very gentle on the skin.

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Traction for new home ventilation platform

Philips’ Sleep & Respiratory Care business continues to garner traction for its market-leading home ventilation offerings, such as the new Trilogy Evo ventilator platform, which is the only portable life support solution designed to stay with patients as they change care environments.

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Digital pathology partnership and innovation

As the leading provider of digital and computational pathology solutions, Philips teamed up with Oxford University Hospitals NHS Foundation Trust to create a digital pathology network in the UK. Philips also released a new version of its AI-powered TissueMark, which will enable molecular research labs to reduce variability in tumor estimation and related costs.

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