- Accelerate! is working; Philips is committed to achieve its 2013 financial performance targets, on-going headwinds remain a concern
- Further productivity improvements and investments for growth leading to 100-200 bps EBITA improvement
- New share buy-back program: EUR 1.5 billion over next 2-3 years
- Group 2016 financial performance targets: Comparable sales growth1 4-6% (CAGR 2014-2016); Reported2 EBITA 11-12% and ROIC3 > 14% by 2016
London, UK – At a meeting with investors and financial analysts today in London, Royal Philips (NYSE: PHG, AEX: PHIA) will update the financial markets on the Group’s Path-to-Value and focus on developments in the Lighting and Consumer Lifestyle businesses.
As part of his company update, Philips Chief Executive Officer Frans van Houten will update the markets on Philips’ progress to date, and the Path-to-Value towards its new 2016 mid-term financial performance targets.
“Philips is a diversified technology company serving attractive markets with a dynamic portfolio of 40 businesses that are addressing important global trends,” said Frans van Houten, CEO Royal Philips. “Together these businesses have significant unlocked potential, and we see substantial opportunities for profitable growth for 2016 and beyond. Our Accelerate! program is working well and will continue for the next four years.”
The Accelerate! program will continue to unlock significant value, with increased 2016 targets as the next step on our Path-to-Value:
|Comparable Sales Growth CAGR1 2014 to 2016:||4 – 6%|
|Group Reported2 EBITA||11 - 12%|
|- Healthcare businesses||16 - 17%|
|- Consumer Lifestyle businesses||11 - 13%|
|- Lighting businesses||9 - 11%|
Mr. Van Houten will further talk about the additional steps Philips will take on its Path-to-Value such as incremental investments that will enable new growth opportunities and further productivity improvement including better operational performance, more end-to-end productivity gains, increased savings and improved gross margins through smarter sourcing and supply.
The new share buy-back program of EUR 1.5 billion will start in October 2013 and will be concluded in the next 2-3 years. All shares repurchased under this program will be cancelled, resulting in a reduction of Philips' outstanding share capital.
After the company update, Frans van Houten and Chief Financial Officer Ron Wirahadiraksa will take part in a question-and-answer session with the investors and analysts present in London.
Thereafter, Eric Rondolat, Chief Executive Officer of Philips Lighting and his executive team will provide an update on its strategy and the continued actions to strengthen Philips Lighting’s number 1 position in the market. They will explain their strategy to lead the LED revolution, win in the consumer market, develop integrated lighting systems and services for the professional market and execute on the Accelerate! program.
Subsequently, Pieter Nota, Chief Executive Officer of Philips Consumer Lifestyle and his executive team will re-iterate the continued focus on Personal Health and Well-being appliances and services. They will elaborate on Consumer Lifestyle’s strategy to deliver strong growth and improved profitability enabled by locally relevant innovation and operational excellence driven by Accelerate!.
Presentations in London will begin at 09:00 AM GMT (10:00 AM CET) and can also be followed via webcast. Please follow this link to listen to the webcast and download the slides that will be used during the day.
1 Assumption is 3-4% real GDP growth
2Including restructuring and acquisition-related charges
3 Excluding M&A impact