London, UK – Royal Philips (NYSE: PHG, AEX: PHIA) today will discuss its strategy to capture the attractive opportunities in the growing HealthTech market at its Capital Markets Day in London.
“Last year, we announced our plan to create two leading, fit-for-purpose companies, focused on the HealthTech and Lighting opportunities and today I am pleased to say that we are well on track,” said CEO Frans van Houten. “In Lighting, we are reinforcing our global leadership position and driving attractive financial returns by optimizing our strong position and performance in conventional lighting to fund continuing profitable growth in LED, Systems and Services. In the HealthTech market, we are leveraging our leadership positions to generate higher growth and scale benefits, focusing on integrated solutions along the health continuum based on our advanced technology and deep customer insights.”
During the meeting, CEO Frans van Houten and CFO Ron Wirahadiraksa will also provide an update on the separation process and on the Group’s financial performance trajectory.
“We continue to expect modest sales growth for 2015 and are focused on improving the adjusted EBITA margin, underpinned by better operational performance, despite a less favorable foreign exchange environment and deteriorating market conditions in certain emerging markets, most notably China,” said Frans van Houten. “The underlying strength of our businesses is enabling us to deliver further improvements, and we expect an adjusted EBITA margin in 2016 of around 11%. At the same time, macro-economic risks are increasing and, as a result, we expect modest sales growth in 2016. Separation and restructuring costs are expected to impact profitability by approximately 200 basis points in 2016, resulting in an anticipated reported EBITA margin of around 9% in 2016. The return on invested capital is expected to be more than 12% in 2016.”
As of the first quarter of 2016, Philips intends to move to a new reporting structure. Sales and profitability per reporting segment (four segments in HealthTech, one for Lighting) will be provided on a quarterly basis. Philips intends to provide historical pro-forma comparable numbers under the new reporting structure prior to the publication of the first quarter 2016 results.
Presentations in London will start at 10:00 AM CET. The plenary sessions until around 11:45 AM CET can be followed via a live webcast. A video summary of the subsequent break-out sessions will be made available soon after the end of the event. Please click on this link to follow the webcast and download the slides that will be used during the day.