Home Healthcare Solutions. Brent Shafer, CEO Healthcare Home Healthcare Solutions

Transcription

1 1 Home Healthcare Solutions Brent Shafer, CEO Healthcare Home Healthcare Solutions

2 Home Healthcare Solutions focus Accelerating growth in: Sleep Respiratory Care Home Monitoring International expansion and growth geographies Positioned to grow above market rates Hospital to Home differentiation 2

3 Bringing health care home 3

4 Global impact of chronic disease and aging 8,400 Average cost for a COPD exacerbation in the U.S. 30B Annual health care cost for COPD in the U.S. 3rd Leading cause of death worldwide 100M+ Estimated number of COPD patients in China 183 Seniors treated in ER each hour due to a fall 43B Projected spending on fallrelated injuries in B Spent on home health care in the U.S. 7.6M Patients receive home health services per year 43M People in the U.S. suffer from sleep-disordered breathing 15-20% Of individuals in the U.S. have an undiagnosed sleep disorder 40-70% Prevalence obstructive sleep apnea in patients with heart failure 4

5 Current situation Our markets continue to experience 6% 8% growth Strong market positions Sleep and Respiratory Care - Leadership in sleep therapy - Opportunity in patient interface - Leadership in ventilation Home Monitoring - North American leadership International markets and growth geographies Positioned to grow above market rates 5

6 Home Healthcare Solutions Sleep We improve the lives of sufferers of obstructive sleep apnea through: Diagnostics Sleep therapy Patient interface (masks) Replenishment services Respiratory Care We improve the lives of respiratory patients through: Ventilation Oxygen Drug delivery Home Monitoring We provide valued remote monitoring and social care solutions that serve patients and at-risk seniors through: Telecare: Lifeline Telehealth: Home monitoring Remote cardiac services 6

7 Advancing or maintaining strong positions in large, growing markets Sleep Respiratory Care Home Monitoring #1 in sleep therapy Many undiagnosed patients worldwide Significant co-morbidities Patient interface market opportunity Replenishment services Market size 1.8B Market growth 6-8% #1 market position Global ventilation leadership Large patient populations Innovation opportunities Growth geography opportunities Market size 1.5B Market growth 6-8% #1 market position in NA Growth in aging population Global expansion underway Hospital to home PERS 1, medication dispensing, Telehealth Market size (NA) 1.7B Market growth (NA) 4-6% 1 PERS - personal emergency response systems 7

8 We have strengthened our global leadership in sleep therapy systems for obstructive sleep apnea System One 2012 Heated tubing Platform enhancements Complex sleep disorders Proprietary AutoSV therapy system Exceptional growth in all geographies REMstar SE Value segment therapy system Accelerate in growth geographies EncoreAnywhere Connects physicians, providers and patients to better manage compliance and improve outcomes New products will secure high-end segment leadership positions and enable entry to new segments 8

9 Our Patient Interface product and service portfolio initial realization of investments TrueBlue nasal mask launched Strong customer acceptance Validation of development direction Full development pipeline powered by customer insights Targeted patient interface launches in 2012 Leading edge seal, comfort, design Market replenishment services Enabling provider customers to realize revenue and efficiencies Go-To-Market alignment Q NA sales reorganization enables 50% increase in customer touch points 9

10 Philips Respiratory Care continues to grow faster than the market Home ventilation #1 in NIV Trilogy Series BiPAP A-Series Oxygen therapy #2 position SimplyGo EverFlo Strong ambulatory product portfolio Airway clearance #1 position CoughAssist Neuromuscular patient focus Respiratory drug delivery #1 position Nebulizers I-neb proprietary technology New additions to broad respiratory portfolio will drive continued growth and improved margins 10

11 Home Monitoring innovating for growth and market expansion Mobile PERS 1 and new communicator Extends current service outside of the home Reinforces leadership position Expands Philips market potential International expansion Launch of Philips Telecare service in Japan Telehealth Accelerating with U.S. readmission penalties Enabling care coordination and patient engagement Hospital to home Integrated strategy and solution development with PCCI 1 PERS - personal emergency response systems 11

12 Reimbursement and payer trends Global payer trends Payment model and care delivery reform Greater awareness of chronic sleep disorder and respiratory populations Comparative Effectiveness Reviews (CER): CPAP continues as gold standard therapy for OSA Evidence supporting telehealth emerging U.S. market Greater acceptance of home sleep testing Competitive bidding expansion Commercial payers adopting treatment compliance policies Telehealth in integrated systems significant impact on readmissions EU mature geographies Budget austerity; impacts single-payer health systems Southern Europe small impact to Philips Home Healthcare France payment categories for sleep and home respiratory undergo revision UK government rolling out programs to accelerate telehealth adoption Growth geographies Most growth geographies (China, India, Russia) have no reimbursement infrastructure for home medical devices Brazil and other LATAM health systems developing more rapidly in home health; home oxygen and ventilation gaining reimbursement 12

13 Our performance outside the U.S. has been strong delivering on our international expansion strategy Mature geographies Strong growth overall: High single-digit Japan Market: Double-digit growth We provide products to providers and services to patients Closely aligned with leading key opinion leaders and universities Entering market with our Philips Telecare service Growth geographies Strong growth: Mid-twenty percent Greater China Market: Mid-twenty percent Driving physician awareness and education of OSA Establishing sleep labs and patient experience centers Targeting large population of respiratory patients Investing in sales and marketing organization 13

14 Path to Value: Home Healthcare Solutions Value Growth 2011 Current Performance Box Growth 2013 Midterm Performance Box EBITA 1 EBITA 1 Solid growth International expansion Building platform for the Hospital to Home opportunity Increased levels of investment to refresh product portfolio Address patient interface portfolio Commercial and structural investments in growth geographies Accelerate! Drive operational excellence through Accelerate! to improve ROIC Drive international expansion Build on Hospital to Home opportunity Improve patient interface market position Innovative product and service introductions Value delivery from past acquisitions 1 as reported, i.e. including restructuring and acquisition related charges 14

15 Key takeaways Executing on strategies Robust innovation pipeline 17 planned product and service introductions in 2012 Globalization/growth geographies Positioned to grow above market rates Strong market positions driving value creation Leadership in sleep therapy Leadership in ventilation, nebulizers Leadership in NA home monitoring 15

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