"Over the past couple of years we've succeeded in consistently improving our business performance - not only in terms of our financials, but also when it comes to developing innovative products, simplifying our supply chain and building intimate relationships with our customers. We've done this while continuing to invest in our future. Of course, this is only the beginning, and there is so much more we can do to help our customers diagnose and monitor patients earlier and more effectively, both inside and outside of the hospital," said Jouko Karvinen, president and CEO, Philips Medical Systems.
At the meeting, executives will also address future growth opportunities for the Medical Systems business, and ways of expanding beyond the diagnostic imaging, patient monitoring and clinical IT businesses. While achieving the financial targets set for this year, the company will examine possibilities for acquisitions that extend and improve the company's existing Medical Systems operations. In a follow-up phase, the company will explore strategies for entering the emerging market for molecular medicine, which may include additional acquisitions
Another topic for discussion at the meeting will be the increasing trend toward personal healthcare. Approximately half of today's healthcare costs in the hospital are associated with caring for the chronically ill. Studies have shown that enabling patients with chronic illnesses to monitor their condition at home not only helps lower healthcare costs, but also helps patients manage their health more effectively in an environment they prefer. Philips believes it is well positioned to address this potential market with its existing range of tele-monitoring devices, extensive experience in wireless home-networking technologies, intimate understanding of the end consumer and strong consumer brand. In personal healthcare, the company is working with partners to develop solutions that are broadband-based, personalized, linked to the care community, and which lead to the development of new care models.
In the field of molecular medicine, executives will discuss Philips' strategic partnerships with customers and research institutes to develop the technologies and imaging agents for a market that is expected to take off in the next five years. Using an individual's biochemistry as the basis for diagnosis and treatment, molecular medicine will be able to detect and image conditions like heart disease and cancer at the level of individual cells. This way treatment can be offered even before symptoms occur leading to dramatically better patient outcomes and lower costs to society.
Business activities in China forecast to double over five years
With the Chinese economy continuing to grow approximately eight percent each year, Philips expects to expand its local market presence and increase exports from China. Between 2002 and 2007, the company forecasts its total business activities in the country will almost double to over EUR 12 billion. In 2003, Philips was already one of the largest foreign investors in China, with a staff of approximately 18,000 employees, and over 1000 research and development personnel employed in the country.
"China has the potential to make a major contribution to Philips' top-line growth, since in China the markets for all of our businesses are expected to grow twice as fast as global markets," David Chang, CEO of Philips China explained. Philips will capitalize on its leading market positions and strong brand to address this local demand, while stepping up research and development activities, broadening its base of Chinese talent and launching cross-company marketing programs. "With our recently announced manufacturing and R&D joint venture with Neusoft in China combined with Philips' strengths in the country, we also expect our Medical Systems business to be a dramatic driver for growth in China," David Chang added.
A webcast of the Financial Analysts Day begins at 10.00 CET and can be followed at www.investor.philips.com. At 17.00 CET, a press briefing on the subjects covered in the morning will also be webcast. To follow the press briefing, please visit www.philips.com/webcast.
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