Philips has realigned three of its reporting segments including diagnosis & treatment, connected care & health informatics, and personal health.
The most notable changes are the shift of the Sleep & Respiratory Care business from the Personal Health segment to the renamed Connected Care segment and the shift of the Healthcare Informatics business from the Connected Care segment to the Diagnosis & Treatment segment. Moreover, recognizing the importance of, and investments in the Image-Guided Therapy businesses, their leader Bert van Meurs joins Philips’ Executive Committee, effective as of January 1, this year.
Effective as of January 1, this year, Philips’ reporting segments are:
Diagnosis & Treatment, which unites the businesses related to the promise of precision diagnosis and disease pathway selection, and the businesses related to image-guided, minimally invasive treatments. This segment comprises the Diagnostic Imaging, Ultrasound, and Healthcare Informatics businesses led by Rob Cascella, and the Image-Guided Therapy businesses led by Bert van Meurs.
Connected Care, which focuses on patient care solutions, advanced analytics and patient and workflow optimization inside and outside the hospital, and aims to unlock synergies from integrating and optimizing patient care pathways, and leveraging provider-payer-patient business models. This segment comprises the Monitoring & Analytics, Therapeutic Care, Population Health Management, and Sleep & Respiratory Care (including the Home Respiratory Care business) businesses led by Carla Kriwet.
Personal Health, which focuses on healthy living and preventative care. This segment comprises the Personal Care, Domestic Appliances, Oral Healthcare, and Mother & Child Care businesses led by Roy Jakobs.
Philips reaffirms its overall targets of 4-6% comparable sales growth and an Adjusted EBITA margin improvement of 100 basis points on average per year for the 2017–2020 period and an improvement of the organic Return on Invested Capital (ROIC) to mid-to-high teens in 2020. The company expects to increase the annual free cash flow to above €1.5bn in next year.
Philips will provide further details on the changes as part of the presentation of its fourth quarter and full year last year results on January 29, this year.
Source: Company Press Release