Global Customer Services. Greg Sebasky, CEO Healthcare Global Customer Services
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1 Global Customer Services Greg Sebasky, CEO Healthcare Global Customer Services
2 Global Customer Services focus Delivering a great customer experience in support of market share gains Sustaining profitable growth globally Innovating to deliver advanced solutions to our customers 2
3 Services designed around what matters most 876px / 218px Technology Professionals Patients Organization Enhancing equipment performance and ROI e.g. RightFit, Lifecycle Solutions, Upgrades Supporting equipment expertise and continuous learning Focusing on patient-centered solutions Supporting financial, organizational and operational efficiencies 3
4 Growing sales faster than installed base Installed base development (units) Imaging Systems CS sales CAGR 6.5% IB CAGR mid-single digit IB CAGR 4% Growth geographies Mature geographies Installed base (IB) expansion largely in growth geographies. Mature geographies benefit from replacement demand with better mix 4
5 Closing the gap in contract penetration 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 Growth geographies IB CAGR : 13% 60% Growth geographies contract penetration increase: +9% 50% 40% 30% 20% 10% IB CP% Growth Emerging CP% Mature % 5
6 Service margin expansion Materials and logistics Parts usage Logistics optimization Serviceability Reliability 350 bps Labor productivity Capacity planning Organizing around customer Remote productivity Event management 2009 Materials and Labor All others 2011 logistics 6
7 Creating value Our processes and programs contribute to overall profit and customer experience RightFit service agreements provide a mix of maintenance, clinical and business solutions to deliver value-focused programs for customers Spare parts global design reduces cost and improves fill rate Remote fix rate has grown from 19% to 32% in 2011 Growth geography margins nearing mature market levels Margin expansion while still growing customer satisfaction 7
8 Service trends and Philips response What customers want Customer focus on speed, cost and outcomes Interest in new contract options Demand for learning for staff to support productivity Demand for partnerships and risk sharing Increase mix of value products within installed base Philips response Philips workflow and design services are integral to delivering time and cost-efficient results RightFit service agreements give customers flexible contract options globally Advance clinical training and continuing education services to help to increase productivity Investments in solutions are future-proofed and risks are mitigated with managed services Philips provides configurability for equipment and customer needs 8
9 Innovating the customer experience Construction project main phases Innovative solutions and services Plan Design Build Manage Experience, workflow design and sustainability consulting Experience, care cycle and GREEN design Ambient Experience and embedded workflow solutions Post-occupancy assessments, workflow improvement and services 9
10 Hoag Hospital to debut peaceful surgery room 10
11 Path to Value: Global Customer Services Value Growth 2011 Current Performance Box EBITA 1 Growth and execution Margin expansion while still growing customer satisfaction Margins well balanced across geographies Remote fix rate has grown from 19% to 32% in 2011 #1 IMV 2 overall in Imaging North America 2013 Growth Midterm Performance Box EBITA 1 Customer focus Global roll out of RightFit Expand solutions business Grow lifecycle service business Accelerate remote fix rate towards 50% Improved serviceability/reliability Service parts cost innovation Attain #1 IMV 2 position for CT and MR 1) as reported, i.e. including restructuring and acquisition related charges 2) IMV ServiceTrak measures is an annual relationship study that measures overall satisfaction with service and system experience in North America 11
12 Key takeaways Growth Growing sales faster than installed base Strong record of margin expansion Driving cost structure to meet market conditions Customer focus Addressing the total customer experience Investing in a solutions business to help solve our customers biggest challenges 12
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Global Customer Services
Global Customer Services Greg Sebasky Analysts Meeting June 15th, 2005 Agenda Market Intro Financial Results Services Strategy Refurbishment Summary 2 Portfolio 2004 Results Imaging Systems EUR 2.8 bln
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