Royal Philips is a health technology company. It operates through three main segments: Diagnostics & Treatment with 42% of sales in FY20 (diagnostic imaging, ultrasound, enterprise diagnostic informatics and image guided therapy systems), Connected Care with 28% of sales (monitoring & analytics, sleep & respiratory care, therapeutic care, and informatics platforms) and Personal Health with 28% of sales (oral healthcare, mother & childcare and personal care). Its retail customers are people looking to have a healthier lifestyle, prevent disease or live well with chronic illness, while its institutional customers are primarily healthcare providers such as clinics and hospitals.
Founded in Eindhoven in 1891, the company is active in more than 100 countries worldwide with most revenues coming from the US (34% of revenue in FY20), followed by Asia Pacific (18% of revenues with around 12% from China and the rest from Japan), Western Europe (15% of revenues with around 7% from Germany and the rest evenly divided within the UK, the Netherlands and France), and other countries (33% of revenues).
Several global trends, such as aging populations, the rise of chronic diseases, and resource constraints, are putting pressure on health systems to increase the focus on productivity by accelerating the digitisation of care. With its products and services, Philips helps health providers to achieve better health outcomes and improve patient experience, while at the same time improving staff experience and lowering the cost of care.
The company also has specific ESG commitments with targets and plans of action. It has set targets regarding the use of renewable energy, CO2 emissions reduction and the incorporation of circularity practices. In the social sphere the company aims to improve the health and well-being of 2 billion people per year by 2025 (300 million in under-served communities).