Philips 2008 Annual Report Download - page 76

Our multi-purpose catheterization labs provide advanced
solutions for a wide range of minimally-invasive procedures,
ranging from balloon angioplasty and stenting to structural
heart repair and electrophysiology. Lastly, our remote
monitoring tools and services make it possible to monitor
and support chronic cardiac patients in the convenience
of their own homes.
Oncology
One of the areas of focus for our Oncology segment
is colorectal cancer, one of the leading causes of death
globally. Death from colorectal cancer can largely be
prevented; however, the central issue is that too few
patients receive screening. In the US, optical colonoscopy
is an approved and reimbursed procedure
recommended
for anyone over the age of 50, but since it is such an
invasive procedure, only about one-third of people
who are eligible actually have it done. Leveraging
computed tomography (CT) for virtual colonoscopy,
Philips is seeking to make this procedure accurate
and patient-friendly, with a goal to increase screening
participation. A more comfortable exam for patients,
virtual colonoscopy avoids the need for sedation –
meaning patients can return to work immediately
after the procedure.
Women’s health
Philips is committed to developing technologies to
enhance solutions for women’s specific conditions
and diseases, such as breast cancer. Breast imaging,
for example, benefits from a multi-modality approach.
Clinicians are increasingly relying on multiple imaging
technologies to screen for, diagnose and treat breast
cancer. In addition to unveiling a new MRI scanner,
the Achieva 3.0T TX, in 2008 Philips showcased its
comprehensive portfolio of Breast Health solutions,
including MammoDiagnost DR, iU22 Breast Ultrasound,
MR Elite Breast and GEMINI TF Big Bore PET/CT.
2008 financial performance
In 2008, sales amounted to EUR 7,649 million, 15%
higher than in 2007 on a nominal basis, largely thanks
to the contributions from acquired companies, notably
Respironics. Excluding the 14% positive impact of
portfolio changes and the 5% unfavorable impact
of currency effects, comparable sales grew 6%. All
businesses showed positive growth, led by solid sales
growth in Customer Services, Clinical Care Systems,
and Healthcare Informatics and Patient Monitoring.
Higher sales within Imaging Systems were supported
by X-Ray and Nuclear Medicine, partly tempered by
lower sales at Computed Tomography. Green Product
sales amounted to EUR 1,527 million in 2008, up
from EUR 1,452 million in 2007, representing 20%
of sector sales.
Geographically, double-digit comparable sales growth
was achieved in the key emerging markets, notably
in China and Latin America, driven by growth in all
businesses. Also, single-digit sales growth was recognized
in the mature markets, across all businesses, notably
Imaging Systems and Clinical Care Systems.
EBITA of EUR 863 million, or 11.3% of sales, was in
line with 2007 earnings of EUR 862 million. Earnings
included EUR 90 million of acquisition-related charges
and EUR 69 million of restructuring charges, which
were partly offset by a EUR 45 million gain on the
sale of Philips Speech Recognition Systems. EBITA
also included additional income from Respironics
and higher earnings at Clinical Care Systems and
Healthcare Informatics and Patient Monitoring,
partly offset by lower earnings at Imaging Systems.
Key data
in millions of euros
20061) 20071) 2008
Sales 6,562 6,638 7,649
Sales growth
% increase, nominal 9115
% increase, comparable 846
EBITA 857 862 863
as a % of sales 13.1 13.0 11.3
EBIT 713 713 638
as a % of sales 10.9 10.7 8.3
Net operating capital (NOC) 4,699 4,802 8,830
Cash flows before financing activities (1,003) 236 (2,418)
Employees (FTEs) 27,223 29,191 35,551
Revised to reflect immaterial adjustments of intercompany profit
1)
eliminations on inventories.
For a reconciliation to the most directly comparable US GAAP measures,
see the chapter Reconciliation of non-US GAAP information
Philips Annual Report 200876
18
We care about...
8
Message from
the President
6
Performance highlights
14
Who we are
42
Our group performance