Daily Archives: January 28, 2020

Four-year data from ILLUMENATE Pivotal trial reaffirms safety profile of Philips Stellarex low-dose Drug-Coated Balloon

January 28, 2020

  • Mortality rates similar to standard of care through four years with excellent rate of follow-up compliance
  • Philips Stellarex is the only low-dose Drug-Coated Balloon (DCB) to demonstrate sustained treatment effect and high safety profile through four years 

Amsterdam, the Netherlands and Leipzig, Germany – Royal Philips (NYSE: PHG, AEX: PHIA), a global leader in health technology, today announced the four-year results from the randomized controlled ILLUMENATE Pivotal trial in the U.S. With an excellent follow-up compliance rate of over 95% in a highly complex disease patient cohort, the data show similar mortality rates through four years for patients treated with Stellarex compared to those treated with the current standard of care (plain balloon angioplasty). The results were presented at the Leipzig Interventional Course today, January 28th, by Sean Lyden, MD, Chairman of the Department of Vascular Surgery, Cleveland Clinic (U.S.), and co-Primary Investigator for the ILLUMENATE Pivotal trial [1].

The four-year ILLUMENATE Pivotal trial data are the latest data from a series of trials evaluating the safety and efficacy of the Philips Stellarex .035″ low-dose [2] DCB in restoring and maintaining blood flow in the superficial femoral artery and popliteal arteries of patients with peripheral arterial disease. The results were evaluated compared to percutaneous transluminal angioplasty (PTA) treatment with uncoated balloons, the current standard of care.

“The four-year data from the ILLUMENATE Pivotal trial further substantiates the three-year results that were presented at LINC 2019 and published in Circulation in 2019,” said Sean Lyden, MD. “The high compliance follow-up rate further affirms the findings of these data in a complex patient population.”

The study’s patient population is complex with a high proportion suffering from severely calcified lesions. The mortality rate at four years was virtually identical between the two patient groups, at 15.6% for the Stellarex patient group and 15.2% for the control group. Secondary safety outcomes were also similar across the two groups. The four-year data also show a clinically relevant lower rate of clinically-driven target lesion revascularization (CD-TLR) in the Stellarex DCB patient group of 28.2%, vs 34.1% in the control group. CD-TLR is a commonly used indicator of treatment efficacy durability.

“The ILLUMENATE Pivotal four-year data builds on the robust, consistent long-term data of the Stellarex clinical evaluation program,” said Chris Landon, general manager, Image Guided Therapy Devices at Philips. “We continue to make relevant data available to healthcare providers in order to help them make an informed decision on the optimal treatment for often complex disease patients with peripheral arterial disease.”

Featuring Philips EnduraCoat technology, a unique coating consisting of a polyethylene glycol excipient with amorphous and crystalline paclitaxel particles dispersed in it, the Stellarex .035” DCB is unlike any other drug-coated balloon for the treatment of peripheral artery disease. EnduraCoat technology provides efficient drug transfer and effective drug residency coupled with high coating durability and minimal particulate loss, thereby enabling a low therapeutic drug dose.

[1] As the study sponsor, Philips was involved in the study design and data collection but was not involved in the analysis or interpretation of the data. Sean Lyden has a consulting relationship with Philips but has not received financial compensation from Philips with regard to the Pivotal data analysis and presentation.
[2] Low-dose DCBs are those that deliver a dose of only 2 micrograms of the drug paclitaxel per square millimeter, which is lower than some other DCBs on the market.

For further information, please contact:

Mark Groves
Philips Global Press Office
Tel: +31 631 639 916
Email: mark.groves@philips.com
Twitter: mark_groves

Fabienne van der Feer
Philips Image Guided Therapy
Tel: +31 622 698 001
Email: fabienne.van.der.feer@philips.com
Twitter: FC_Feer

About Royal Philips

Royal Philips (NYSE: PHG, AEX: PHIA) is a leading health technology company focused on improving people’s health and enabling better outcomes across the health continuum from healthy living and prevention, to diagnosis, treatment and home care. Philips leverages advanced technology and deep clinical and consumer insights to deliver integrated solutions. Headquartered in the Netherlands, the company is a leader in diagnostic imaging, image-guided therapy, patient monitoring and health informatics, as well as in consumer health and home care. Philips generated 2019 sales of EUR 19.5 billion and employs approximately 80,000 employees with sales and services in more than 100 countries. News about Philips can be found at www.philips.com/newscenter.

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Top Trends Driving Technology Innovation Investments in 2020 Revealed by Virtusa

Financial Services, Insurance, and Life Sciences Leading in Innovation to Start the New Decade

SOUTHBOROUGH, Mass., Jan. 28, 2020 (GLOBE NEWSWIRE) — Virtusa Corporation (NASDAQ GS:VRTU), a global provider of digital strategy, digital engineering, and IT services and solutions that help clients change and disrupt markets through innovation engineering, today announced the findings of detailed research identifying trends that will drive emerging technology investments in 2020. The third annual Virtusa xLabs’ Trend Almanac details the top ten technology trends that strategically align with business and technology investments.

The major trends, which Virtusa identified in collaboration with technology and business leaders, focus on the Financial Services, Insurance, and Life Sciences industries. Aligning investments to the most influential technology trends will help businesses to stay competitive and drive growth in 2020 and throughout the new decade.

The full report identifies three overriding themes:

  • The democratization of emerging tech, reducing the investment, and skill needed to develop and capitalize on tech across infrastructure, applications, and data.
  • The need for transparency, ethical practice, and good governance to balance the manic rush to explore and exploit “The New.”
  • A change in how companies manage tech-enabled innovation programs, ensuring that tech is seen as a means to drive better commercial outcomes, rather than being an end in itself.

“The Virtusa xLabs’ Trend Almanac exposes the new business imperatives that business and technology leaders need to invest in to remain competitive,” said Senthil Ravindran, EVP and global head of cloud transformation and digital innovation, Virtusa.  “Digital transformation demands a new way of thinking and getting a jump start on the trends that will impact customers tomorrow. This Trend Almanac will be a key resource in helping businesses do just that.”

The top ten trends include:

Open Banking Goes Global: Open Banking is starting to become a global movement. To date, actual regulations and market changes have only occurred in Europe, even though, as a topic it has been on everybody’s tongue. But the move by Australian regulators to implement substantial regulatory reforms this year, giving consumers greater control of their data, signals the paradigm shift to the API economy is well underway. We explore this trend and classify the current approaches to Open Banking across the world.

No Child’s Play in the Sandbox. A new breed of regulatory sandbox is making waves. Thematic regulatory sandboxes are credited with taking a more focused approach to sandbox design, where the policy objectives, as well as the problems tackled by the sandbox, are clearly defined. This appeals to regulators as much as fintechs and big firms, who are looking to build engagement and accelerate promising innovations to markets in a controlled and safe environment.

Value Over Volume in Healthcare. Healthcare systems around the world are sinking under the weight of escalating costs. However, there are positive signs that a transition is underway from the reigning fee-for-service delivery model, which has contributed to the cost overhang in many countries, towards the value-based care model. Regulatory and technology forces are key factors that are driving this shift. In 2020, we believe this pivot to value-based care will gain further momentum.

Shop Now, Pay Later. Point of sale finance is getting red hot. In recent years, digital startup lenders have carved up the segment, leveraging the latest tech to introduce installment loans to the millennial market, but also thinking outside the box by devising new business models. Consumers are on board, as are retailers. Meanwhile, banks have mostly been onlookers, having decided not to develop their own customer-facing solutions. In 2020, we think banks will get into the game.

The End of All Disease? CRISPR (Clustered Regularly Interspaced Short Palindromic Repeats) is a breakthrough technology lauded for its extraordinary precision and ease of use. Since Doudna and Charpentier’s landmark paper was published in 2012, there has been a flurry of research activity and much progress as well as media interest in the field. CRISPR is now poised to move into the next phase in the journey from lab to market.

From Factory to App: Automobiles Take a New Route. Consumer adoption of “mobility as a service” (MaaS) is challenging the auto manufacturers’ traditional approach to “mobility as an asset.” Tech-enabled innovations, such as ride-sharing, last-mile micro-mobility solutions, and the rise of autonomous cars as a utility, are driving the growing popularity of MaaS offerings. In 2020, auto manufacturers will join this trend by creating new propositions around MaaS.

Ready, Set, Quantum! After decades in the wilderness, quantum computing is finally hitting its stride. Instead of being held back by hardware hurdles, in a surprising twist, enterprises have been powering ahead with innovations on “near-term” quantum machines. No longer is this esoteric field the domain of researchers alone. It is now being addressed by a broader set of players, helped along by greater access to tools and collaborations.

Corporate Innovation Labs Grow Up. The reputation of corporate innovation labs has taken a hit in recent years, causing businesses to rethink their operating model. This year, there will be a greater focus on empowering a network of affiliate labs in a federated model, which will enable labs to pursue innovation rather than incremental optimizations. With this model, there will be greater alignment between the business unit’s objectives, its funding, and the activities of the innovation program.

Self-Aware Infrastructure. In a digital world run by infrastructure, machine learning is weakening the dependence of human supervision. Progressively smart infrastructure will be able to self-govern, self-optimize, and self-heal, resulting in highly optimized, fault-tolerant infrastructure. As cloud service providers continue to expand their footprint in the infrastructure market, we will see the first signs of self-aware infrastructure in 2020.

Machine Learning for All. In 2020, we believe there will be more efficient algorithms to automate Machine Learning (AutoML). This will spur the adoption of AutoML at the enterprise level, helping non-tech firms access the capabilities to build ML applications quickly. This democratization of machine learning will also make AI experts and data scientists more productive and advance the field of AI to new frontiers.

To read more about these trends, download a full copy of the report at: virtusa.com/innovation/2020trends

About Virtusa Corporation

Virtusa Corporation (NASDAQ GS: VRTU) is a global provider of digital business strategy, digital engineering, and information technology (IT) services and solutions that help clients change, disrupt, and unlock new value through innovation engineering. Virtusa serves Global 2000 companies in Banking, Financial Services, Insurance, Healthcare, Communications, Media, Entertainment, Travel, Manufacturing, and Technology industries.

Virtusa helps clients grow their business with innovative products and services that create operational efficiency using digital labor, future-proof operational and IT platforms, and rationalization and modernization of IT applications infrastructure. This is achieved through a unique approach blending deep contextual expertise, empowered agile teams, and measurably better engineering to create holistic solutions that drive business forward at unparalleled velocity enabled by a culture of cooperative disruption.

© 2020 Virtusa Corporation.  All rights reserved.

Contact:
Ron Favali
Conversion Marketing
Ron@conversionam.com
727-512-4490

Philips delivers Q4 sales of EUR 6 billion, with 3% comparable sales growth; income from continuing operations amounted to EUR 550 million and Adjusted EBITA margin increased to 17.9%

January 28, 2020

Fourth-quarter highlights

  • Sales amounted to EUR 6 billion, with 3% comparable sales growth
  • Comparable order intake increased 3%
  • Income from continuing operations was EUR 550 million, compared to EUR 723 million in Q4 2018
  • Adjusted EBITA margin improved by 50 basis points to 17.9% of sales, compared to 17.4% of sales in Q4 2018
  • Income from operations amounted to EUR 730 million, compared to EUR 769 million in Q4 2018
  • EPS from continuing operations (diluted) amounted to EUR 0.61; Adjusted EPS from continuing operations (diluted) increased 9% compared to Q4 2018 to EUR 0.83
  • Operating cash flow amounted to EUR 1,271 million, compared to EUR 1,293 million in Q4 2018; free cash flow was EUR 959 million, compared to EUR 1,019 million in Q4 2018

Full-year highlights

  • Sales increased to EUR 19.5 billion, with 4% comparable sales growth
  • Comparable order intake increased 3%
  • Income from continuing operations was EUR 1,192 million, compared to EUR 1,310 million in 2018
  • Adjusted EBITA margin increased 10 basis points to 13.2% of sales, compared to 13.1% of sales in 2018
  • Income from operations amounted to EUR 1,644 million, compared to EUR 1,719 million in 2018
  • EPS from continuing operations (diluted) amounted to EUR 1.30; Adjusted EPS from continuing operations (diluted) increased 15% compared to 2018 to EUR 2.02
  • Operating cash flow totaled EUR 2,032 million, compared to EUR 1,780 million in 2018; free cash flow increased to EUR 1,053 million, compared to EUR 984 million in 2018
  • Proposed dividend of EUR 0.85 per share

Company update

  • Philips to review ownership options for the Domestic Appliances business
  • Roy Jakobs appointed as the new Chief Business Leader of the Connected Care businesses, succeeding Carla Kriwet, who will leave the company

Frans van Houten, CEO

“I am encouraged that the three business segments together delivered 4% comparable sales growth and an Adjusted EBITA margin improvement of 120 basis points in the fourth quarter, despite a more challenging environment. This performance was partly offset by lower IP royalties compared to Q4 2018, resulting in 3% comparable sales growth and an Adjusted EBITA margin improvement of 50 basis points for the Group. Comparable order intake grew a further 3%, on the back of strong 10% growth in Q4 2018.

For the full year, we are pleased to have grown the company to EUR 19.5 billion sales with 4.5% comparable sales growth, achieving a free cash flow of more than EUR 1 billion, and increasing adjusted earnings per share from continuing operations by 15%. Our profitability improvement of 10 basis points for the year fell short of our plan, partly due to headwinds.

Looking ahead at 2020 we continue to see geopolitical and economic risks. We aim for 4-6% comparable sales growth and an Adjusted EBITA margin improvement of around 100 basis points, with a performance momentum that is expected to improve in the course of the year.”

Business segment performance

In the fourth quarter, all business segments delivered growth and increased profitability.

The Diagnosis & Treatment businesses recorded 5% comparable sales growth in the quarter, driven by high-single-digit growth in Image-Guided Therapy and mid-single-digit growth in Ultrasound. Comparable order intake showed a low-single-digit increase on the back of high-single-digit growth in Q4 2018. The order intake growth was driven by double-digit growth in China and Western Europe. The Adjusted EBITA margin increased to 16.3%, mainly due to sales growth, partly offset by investments and tariffs. For the full year, the Diagnosis & Treatment businesses delivered 5% comparable sales growth and an increased Adjusted EBITA margin of 12.7%.

The Connected Care businesses delivered 2% comparable sales growth in the quarter, driven by mid-single-digit growth in Monitoring & Analytics. Comparable order intake showed a mid-single-digit increase, driven by double-digit growth in North America and China. The Adjusted EBITA margin increased to 19.4%, mainly due to sales growth and productivity, partly offset by the impact of tariffs. For the full year, the Connected Care businesses delivered 3% comparable sales growth and the Adjusted EBITA margin decreased to 13.2%.

The Personal Health businesses delivered comparable sales growth of 4% in the quarter, driven by double-digit growth in Oral Healthcare and mid-single-digit growth in Personal Care. The Adjusted EBITA margin increased to 20.1%, mainly due to sales growth, a positive mix impact and productivity, partly offset by tariffs. For the full year, the Personal Health businesses delivered 5% comparable sales growth and an increase in Adjusted EBITA margin to 16.1%.

Philips’ ongoing focus on innovation and strategic partnerships to make the world healthier and more sustainable resulted in the following highlights in the quarter and the full year:

  • In 2019, Philips’ products and solutions improved the lives of 1.64 billion people, compared to 1.54 billion in 2018; this includes 194 million people in underserved communities, compared to 175 million in 2018. Additionally, for the seventh consecutive year Philips was ranked on CDP’s Climate Change A-list in recognition of its actions to reduce emissions, mitigate climate risks and develop the low-carbon economy. Philips is the first health technology company to have committed to become carbon-neutral in its operations by 2020.
  • Philips entered into several new long-term strategic partnerships, including a 5-year partnership with the Regional Medical Center in South Carolina to provide diagnostic imaging and image-guided therapy solutions to innovate patient care. Philips also announced a 5-year agreement with US-based Inspira Health to standardize patient monitoring and drive innovation in diagnostic imaging and image-guided therapies in order to enhance patient care and improve clinical workflow performance.
  • Driven by Philips’ innovative portfolio of diagnostic imaging, image-guided therapy and patient monitoring solutions, the company continues to win large contracts in China. For example, Philips signed an agreement with the Xi’an International Medical Group to deliver solutions to address clinical and research needs in cardiology, radiation oncology and critical care.
  • Philips continues to set the standard in integrated solutions for image-guided therapy with the expansion of its Azurion platform with FlexArm and the seamless integration of its smart catheters in the platform. The successful launch of Azurion in China and expansion of its smart catheter offering in Europe and Asia contributed to double-digit comparable sales and order intake growth for the Image-Guided Therapy business in 2019.
  • Demonstrating the success of Philips’ telehealth solutions for critical care, US-based Health First achieved significant results by using Philips’ acute telehealth platform. Powered by Philips’ eCareManager, Health First’s VitalWatch eICU achieved a 23% reduction in overall mortality, a 49% reduction in ICU length of stay, and a 35% reduction in length of stay across its four hospitals.
  • Philips expanded its General Care solutions portfolio with the launch of the EarlyVue VS30 in the US. This new vital signs monitor uses automated Early Warning Scoring (EWS) to collect critical vital signs and calculate risk-based alerts that allow clinicians to identify subtle signs of patient deterioration and facilitate communication between caregivers for timely intervention and patient care.
  • Building on the success of Philips’ leading oral care solutions, the company rolled out the BrushSmart program in collaboration with Delta Dental of California, the largest provider of dental benefits in the US. The subscription-based program includes a discounted Sonicare toothbrush, coaching and teledentistry, and connects brushing behaviors at home with professional dental care to better understand, motivate and drive improvements in oral health.
  • The global roll-out of Philips’ premium Shaver S9000 Prestige with BeardAdapt Sensor, which adapts the shaver automatically to the user’s hair, and mid-range Shaver S7000 with a personalized solution for sensitive skin, continues to result in positive user reviews and supported strong performance of the Male Grooming business in the quarter.

Domestic Appliances review

Philips announced this morning that it will review options for future ownership of the Domestic Appliances business, and start the process of creating a separate legal structure for this business. The Domestic Appliances business is a global leader with EUR 2.3 billion sales in 2019 in kitchen appliances, coffee, garment care and home care appliances.

Frans van Houten: “The Domestic Appliances business has significantly contributed to Philips, but it is not a strategic fit for our future as a health technology leader, as we choose to further sharpen our focus along the health continuum and invest in our consumer health and professional healthcare-related businesses.”

Executive Committee management changes

Roy Jakobs, currently Chief Business Leader of the Personal Health businesses, has been appointed as the new Chief Business Leader of the Connected Care businesses with immediate effect. He succeeds Carla Kriwet, who will leave the company.

Frans van Houten: “On behalf of Philips’ Executive Committee, I want to thank Carla for her contributions to Philips, and wish her the best in her future endeavors. At the same time, I am pleased to announce Roy as the new leader of the Connected Care businesses and would like to highlight his global leadership experience, with a strong business performance record, and accomplishments in strategy, digital innovation and new business development in the business-to-consumer and business-to-business domains.”

A successor for the Personal Health Chief Business Leader role will be announced in due course. Philips CEO Frans van Houten will lead the Personal Health businesses on an interim basis.

Cost savings

In the fourth quarter of 2019, cost savings totaled EUR 125 million, with procurement savings of EUR 39 million and savings from overhead and other productivity programs of EUR 86 million, resulting in annual savings of EUR 480 million in 2019.

Capital allocation

As of the end of the fourth quarter of 2019, Philips has completed 41.5% of its EUR 1.5 billion share buyback program for capital reduction purposes that was announced on January 29, 2019. Further details can be found here.

In the quarter, Philips completed the cancellation of 8.5 million shares that were acquired as part of the share buyback program mentioned above.

At the end of the fourth quarter of 2019, the total number of issued shares outstanding was 890,973,790 shares, compared to 914,184,087 shares at the end of the fourth quarter of 2018.

Regulatory update

Philips continues to address the follow-up requests of the US Food and Drug Administration (FDA) as part of its efforts to fulfill its obligations under the Consent Decree [1] and remains in dialogue with the agency.

[1] Under the Consent Decree, Philips continues to export its range of AED devices and manufacture and distribute its HS1/OnSite/Home automated external defibrillator (AED) model in the US. The company may also continue to service the AEDs provided that certain conditions are met and provide consumables and the relevant accessories.

Click here to view the release online

For further information, please contact:

Ben Zwirs
Philips Global Press Office
Tel: +31 6 1521 3446
Email: ben.zwirs@philips.com

Martijn van der Starre
Philips Global Press Office
Tel.: +31 6 2847 4617
E-mail: martijn.van.der.starre@philips.com

About Royal Philips

Royal Philips (NYSE: PHG, AEX: PHIA) is a leading health technology company focused on improving people’s health and enabling better outcomes across the health continuum from healthy living and prevention, to diagnosis, treatment and home care. Philips leverages advanced technology and deep clinical and consumer insights to deliver integrated solutions. Headquartered in the Netherlands, the company is a leader in diagnostic imaging, image-guided therapy, patient monitoring and health informatics, as well as in consumer health and home care. Philips generated 2019 sales of EUR 19.5 billion and employs approximately 80,000 employees with sales and services in more than 100 countries. News about Philips can be found at www.philips.com/newscenter.

Forward-looking statements and other important information

Forward-looking statements

This document and the related oral presentation, including responses to questions following the presentation, contain certain forward-looking statements with respect to the financial condition, results of operations and business of Philips and certain of the plans and objectives of Philips with respect to these items. Examples of forward-looking statements include: statements made about the strategy; estimates of sales growth; future Adjusted EBITA; future restructuring, acquisition-related and other costs; future developments in Philips’ organic business; and the completion of acquisitions and divestments. By their nature, these statements involve risk and uncertainty because they relate to future events and circumstances and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these statements.

These factors include but are not limited to: changes in industry or market circumstances; economic and political developments; Philips’ increasing focus on health technology; the realization of Philips’ growth ambitions and results in growth geographies; lack of control over certain joint ventures; integration of acquisitions; securing and maintaining Philips’ intellectual property rights and unauthorized use of third-party intellectual property rights; compliance with quality standards, product safety laws and good manufacturing practices; exposure to IT security breaches, IT disruptions, system changes or failures; supply chain management; ability to create new products and solutions; attracting and retaining personnel; financial impacts from Brexit; compliance with regulatory regimes, including data privacy requirements; governmental investigations and legal proceedings with regard to possible anticompetitive market practices and other matters; business conduct rules and regulations; treasury risks and other financial risks; tax risks; costs of defined-benefit pension plans and other postretirement plans; reliability of internal controls, financial reporting and management process. As a result, Philips’ actual future results may differ materially from the plans, goals and expectations set forth in such forward-looking statements. For a discussion of factors that could cause future results to differ from such forward-looking statements, see also the Risk management chapter included in the Annual Report 2018.

Third-party market share data

Statements regarding market share, including those regarding Philips’ competitive position, contained in this document are based on outside sources such as research institutes, industry and dealer panels in combination with management estimates. Where information is not yet available to Philips, those statements may also be based on estimates and projections prepared by outside sources or management. Rankings are based on sales unless otherwise stated.

Use of non-IFRS information

In presenting and discussing the Philips Group’s financial position, operating results and cash flows, management uses certain non-IFRS financial measures. These non-IFRS financial measures should not be viewed in isolation as alternatives to the equivalent IFRS measure and should be used in conjunction with the most directly comparable IFRS measures. Non-IFRS financial measures do not have standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. A reconciliation of these non-IFRS measures to the most directly comparable IFRS measures is contained in this document. Further information on non-IFRS measures can be found in the Annual Report 2018.

Use of fair value information

In presenting the Philips Group’s financial position, fair values are used for the measurement of various items in accordance with the applicable accounting standards. These fair values are based on market prices, where available, and are obtained from sources that are deemed to be reliable. Readers are cautioned that these values are subject to changes over time and are only valid at the balance sheet date. When quoted prices or observable market data are not readily available, fair values are estimated using appropriate valuation models and unobservable inputs. Such fair value estimates require management to make significant assumptions with respect to future developments, which are inherently uncertain and may therefore deviate from actual developments. Critical assumptions used are disclosed in the Annual Report 2018. In certain cases independent valuations are obtained to support management’s determination of fair values.

Presentation

All amounts are in millions of euros unless otherwise stated. Due to rounding, amounts may not add up precisely to totals provided. All reported data is unaudited. Financial reporting is in accordance with the accounting policies as stated in the Annual Report 2018, except for IFRS 16 lease accounting, which is implemented per January 1, 2019 and the adoption of IFRIC 23 Uncertainty over Income Tax Treatments effective January 1, 2019, resulting in a balance sheet reclassification. In addition, certain prior-year amounts have been reclassified to conform to the current year presentation.

As announced on January 10, 2019, Philips has realigned the composition of its reporting segments effective as of January 1, 2019. The most notable changes are the shifts of the Sleep & Respiratory Care business from the Personal Health segment to the renamed Connected Care segment and most of the Healthcare Informatics business from the renamed Connected Care segment to the Diagnosis & Treatment segment. Accordingly, the comparative figures have been restated. The restatement has been published on the Philips Investor Relations website and can be accessed here.

Market Abuse Regulation

This press release contains inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.

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Philips to review options for its Domestic Appliances business

January 28, 2020

Amsterdam, the Netherlands – Royal Philips (NYSE: PHG, AEX: PHIA), a global leader in health technology, today announced that it will review options for future ownership of its Domestic Appliances business. Philips will start the process of creating a separate legal structure for this business within the Philips Group, which is expected to be completed in 12 to 18 months. The Domestic Appliances business is a global leader with EUR 2.3 billion sales in 2019 in kitchen appliances, coffee, garment care and home care appliances with successful products such as the Airfryer XXL, Automatic Coffee Machine with LatteGo, Perfect Care Elite steam generator, Air Purifier and SpeedPro Max Aqua vacuum cleaner.

“We have significantly improved the performance of the Domestic Appliances business over the years, which has made a very important contribution to Philips, however this business is not a strategic fit for our future as a health technology leader,” said Frans van Houten, CEO of Royal Philips. “We are committed to finding a good home for this business to continue to thrive and grow over time, as we expand and invest in our consumer health and professional healthcare related businesses.”

“We are also committed to a seamless transition of the Domestic Appliances business with continuity for our employees, partners and customers,” added Frans van Houten. “At the same time, we will continue to innovate and invest in our Personal Health businesses in areas such as oral care, mother & child care and personal care, to empower people to take control of their own health and well-being needs.”

Philips is a leading provider of integrated solutions to improve people’s health and optimize care provider productivity across the health continuum from healthy living and prevention, to diagnosis, treatment and home care. Following the disentanglement of the Domestic Appliances business, Philips’ EUR 3.5 billion Personal Health businesses will continue to play an important role in the company’s integrated health continuum approach through connected products and solutions to support the health and well-being of people.

For further information, please contact:
Steve Klink
Philips Global Press Office
Tel.: +31 6 1088 8824
E-mail: steve.klink@philips.com

Ksenija Gonciarenko
Philips Investor Relations
Tel.: +31 20 5977055
E-mail: ksenija.gonciarenko@philips.com

About Royal Philips
Royal Philips (NYSE: PHG, AEX: PHIA) is a leading health technology company focused on improving people’s health and enabling better outcomes across the health continuum from healthy living and prevention, to diagnosis, treatment and home care. Philips leverages advanced technology and deep clinical and consumer insights to deliver integrated solutions. Headquartered in the Netherlands, the company is a leader in diagnostic imaging, image-guided therapy, patient monitoring and health informatics, as well as in consumer health and home care. Philips generated 2019 sales of EUR 19.5 billion and employs approximately 80,000 employees with sales and services in more than 100 countries. News about Philips can be found at www.philips.com/newscenter.

Forward-looking statements
This release contains certain forward-looking statements with respect to the financial condition, results of operations and business of Philips and certain of the plans and objectives of Philips with respect to these items. Examples of forward-looking statements include statements made about the strategy, estimates of sales growth, future EBITA, future developments in Philips’ organic business and the completion of acquisitions and divestments. By their nature, these statements involve risk and uncertainty because they relate to future events and circumstances and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these statements.

This press release contains inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.

GLOBAL INFRASTRUCTURE PARTNERS ANNOUNCES THE ELECTION OF TWO NEW PARTNERS

New York, NY, Jan. 27, 2020 (GLOBE NEWSWIRE) — GIobal Infrastructure Partners (“GIP”), a leading independent global infrastructure investor, today announced that Julie Ashworth and Philip Iley have been elected Partners of the Firm, effective January 1, 2020.

Julie Ashworth joined GIP in 2012 and has been a crucial contributor to the success of the Firm. As Deputy General Counsel, she has been actively involved in many aspects of GIP’s business, from supporting our investment activities to leading our legal team and working with investors on our fundraising efforts.

Philip Iley joined GIP in 2016 and has been a key member of our Transport Investment Team and played a leading role in several of GIP’s investments in the sector. He represents GIP on the boards of Italo and Gatwick.

Bayo Ogunlesi, Chairman and Managing Partner of GIP, commented, “We are delighted to announce these promotions as we continue to invest in our most important asset, our people. Julie and Philip have made meaningful impacts on GIP’s businesses in many ways.  These well-deserved promotions are a testament to their leadership qualities and to the important contributions that they have made to the success of GIP.”

About Global Infrastructure Partners

Global Infrastructure Partners (“GIP”) is an independent infrastructure fund manager that invests in the equity and credit of infrastructure assets and businesses. GIP targets investments in OECD and select emerging market countries in single assets and portfolios of assets and companies in the energy, transport and water/waste sectors. GIP’s 41 portfolio companies employ over 67,000 people in over 50 countries.  GIP’s teams are located in 10 offices globally: London, New York, Stamford (Connecticut), Sydney, Melbourne, Brisbane, Mumbai, Delhi, Singapore and Hong Kong. For more information, visit www.global-infra.com.

Media Inquiries Team
Global Infrastructure Partners
646 282 1545
mediainquiries@global-infra.com