Mission Statement, Vision, & Core Values (2024) of Koninklijke Philips N.V. (PHG)

An Overview of Koninklijke Philips N.V. (PHG)

General Summary of Koninklijke Philips N.V.

Koninklijke Philips N.V., commonly known as Philips, was established in 1891 in Eindhoven, Netherlands. Initially focused on manufacturing electric bulbs, the company has since evolved into a global leader in health technology. Philips operates in over 100 countries and employs approximately 80,000 people as of 2024.

Philips specializes in a wide range of products and services, categorized mainly into three business sectors: Personal Health, Diagnosis & Treatment, and Connected Care. Key products include:

• Diagnostic Imaging Equipment
• Health Informatics Solutions
• Sleep and Respiratory Care Devices
• Consumer Health Products

As of 2024, Philips reported annual sales of €19.5 billion, showing a robust demand in the healthcare segment.

Company's Financial Performance

In its latest financial report for the fiscal year 2023, Koninklijke Philips N.V. achieved record-breaking revenue of €19.5 billion, a 5% increase from the previous year. The growth was particularly substantiated by an increase in sales of medical devices and healthcare technology.

The breakdown of revenue by business segment is as follows:

Market growth was particularly strong in North America and Asia-Pacific, contributing to an overall increase in Philips' market share. In 2023, the company achieved a net income of €1.25 billion.

Introduction to Philips as an Industry Leader

Philips has established itself as one of the leading companies in the health technology sector, recognized for innovation and quality. The company's commitment to sustainability and improving people's health is evident in its ongoing investments in research and development, which amounted to €1.8 billion in 2023.

With a strong focus on digital health, connected devices, and personalized health solutions, Philips aims to leverage technology for enhanced patient care. The company's strategic initiatives and product innovations are pivotal in maintaining its competitive edge in the industry.

To understand further how Koninklijke Philips N.V. continues to spearhead advancements in health technology, refer to the detailed sections below.

Mission Statement of Koninklijke Philips N.V. (PHG)

Mission Statement of Koninklijke Philips N.V. (PHG)

Koninklijke Philips N.V. aims to improve people's lives through meaningful innovation. The company focuses on health technology, striving to deliver high-quality products and services that enhance patient outcomes, promote better health, and improve the overall healthcare experience.

Core Component 1: Innovation

Philips places a strong emphasis on innovation as a vital part of its mission. The company invests significant resources into R&D to develop state-of-the-art technology solutions.

As of 2023, Philips reported a global R&D expenditure of approximately €1.9 billion, reflecting a 9% increase from the previous year. This investment supports various initiatives, including advancements in imaging systems, patient monitoring, and digital health.

Philips has launched over 100 new products across its healthcare portfolio in the past year, demonstrating its commitment to delivering impactful innovations that drive better health outcomes.

Core Component 2: Sustainability

Sustainability is at the heart of Philips' mission statement. The company aims to create a sustainable impact through its products and operations. Philips has established ambitious targets as part of its sustainability strategy, including achieving carbon neutrality in its operations by 2025.

As of 2022, Philips achieved a 75% reduction in CO2 emissions compared to 2019 levels, contributing to its long-term goal of generating a positive environmental impact.

Moreover, Philips is committed to ensuring that 100% of its products are designed with sustainability principles by 2025, enhancing its overall mission to deliver high-quality products and services.

Core Component 3: Patient-Centered Healthcare

Philips' mission is intrinsically linked to patient-centered healthcare. The company prioritizes the needs of patients and healthcare providers, developing solutions that facilitate better diagnosis and treatment.

According to a report published in 2023, Philips has reached over 2.6 billion patients worldwide through its healthcare solutions, enhancing patient experiences and outcomes.

Philips' dedication to patient-centered solutions is reflected in its partnership with healthcare organizations to co-create innovative technologies, ensuring that patient needs remain the focal point of its mission.

Vision Statement of Koninklijke Philips N.V. (PHG)

Vision Statement Overview

The vision of Koninklijke Philips N.V. (PHG) revolves around making the world healthier and more sustainable through innovation. As of 2024, Philips aims to be a global leader in health technology, focusing on improving people's lives through meaningful innovation.

Health Technology Leadership

Philips' vision emphasizes its commitment to becoming a leader in health technology by integrating advanced technology with healthcare delivery. As of 2023, the global health technology market is projected to reach $660 billion by 2025, growing at a CAGR of 25.4%. Philips is focused on expanding its portfolio in diagnostic imaging, patient monitoring, and health informatics.

Innovation for Better Outcomes

Philips aims to drive innovation by leveraging data analytics and artificial intelligence. The company invested approximately €1.9 billion in R&D for 2023, which constitutes about 8.8% of its total revenue. This investment aims to facilitate the development of new treatment pathways and enhance patient outcomes.

Sustainability Commitment

Philips is committed to sustainability as part of its vision, targeting to have 100% of its products to be circular and eco-friendly by 2025. In 2023, Philips reduced its CO2 emissions by 70% compared to 2018 levels, showcasing its dedication to sustainability in operations and product life cycles.

Customer-Centric Approach

The vision encompasses a strong customer-centric approach, intending to engage with healthcare providers and patients directly. In 2023, Philips achieved a Net Promoter Score (NPS) of 72, indicating a high level of customer satisfaction. The company continually works on improving its services based on feedback from more than 40,000 healthcare professionals.

Conclusion of Vision Statement Components

Philips' vision statement for 2024 encompasses a multifaceted approach to health technology, emphasizing leadership, innovation, sustainability, and customer engagement. This strategy is designed to align with global healthcare needs and ecological responsibilities, ensuring that Philips remains a significant player in the health technology sector.

Core Values of Koninklijke Philips N.V. (PHG)

Innovation

The core value of innovation is central to Koninklijke Philips N.V. as it strives to enhance lives through meaningful innovations. This value is driven by cutting-edge research and development, focusing on healthcare technology.

In 2023, Philips invested approximately €1.8 billion in R&D, which represents about 8.5% of its revenue. This investment has led to several groundbreaking products, including:

• Launch of the Philips Lumify portable ultrasound solution, enabling remote diagnostics.
• Introduction of the Philips Azurion platform, which optimizes minimally invasive surgeries with advanced imaging capabilities.

Customer Focus

Customer focus at Philips means putting customers at the core of decision-making processes to generate real value. Maintaining an ongoing dialogue with healthcare professionals has been essential to this core value.

As of 2024, Philips reported a customer satisfaction score of 90% across its healthcare solutions, reflecting its commitment to understanding and meeting customer needs. Key initiatives include:

• The establishment of the Philips Customer Experience Institute, conducted over 1,000 hours of user research with healthcare practitioners to design user-friendly products.
• Implementation of the “Philips Care Program,” which offers tailored support and training for healthcare providers.

Sustainability

Philips emphasizes sustainability as a core value, focusing on eco-friendly practices and sustainable product development. This commitment has been integral to the company’s strategy and operations.

In 2023, Philips achieved a 75% reduction in CO2 emissions in its operations compared to 2015 levels. Additionally, Philips aims to achieve 100% circularity for its products by 2025. Their initiatives include:

• Development of EcoDesign products, such as the Philips Sonicare toothbrush, which is made from 100% recyclable materials.
• Engagement in global partnerships focused on reducing electronic waste, with a goal of collecting 1 million kg of e-waste by 2025.

Collaboration

Collaboration underpins Philips' approach to fostering innovation and achieving business objectives, both internally and externally. Working jointly with various stakeholders is essential for driving advancements in healthcare technology.

Philips reported collaborating with over 1,500 healthcare institutions globally to co-develop solutions that address specific healthcare challenges. Notable collaborative efforts include:

• Partnership with the University of Pennsylvania for research in patient-centered care.
• Collaboration with local governments in various countries to enhance telehealth solutions, reaching over 3 million patients in 2023.

Integrity

Integrity at Koninklijke Philips N.V. is fundamental to building trust and maintaining transparency with stakeholders. This core value shapes the ethical framework governing the company's operations and engagements.

Philips has been recognized for its ethical standards, achieving a score of 85/100 in the 2023 Corporate Responsibility Index. Key actions taken include:

• Implementation of rigorous compliance training programs for over 25,000 employees worldwide.
• Establishment of a whistleblower hotline to ensure accountability and transparency, receiving over 150 reports in 2023.