Global Sales and Service International - Philips
Global Sales and Service International - Philips
Global Sales and Service International - Philips
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<strong>Global</strong> <strong>Sales</strong> <strong>and</strong> <strong>Service</strong> <strong>International</strong><br />
Kevin Haydon<br />
EVP <strong>and</strong> CEO <strong>Global</strong> <strong>Sales</strong> <strong>and</strong> <strong>Service</strong> <strong>International</strong><br />
May 31st 2007
Agenda<br />
• <strong>Global</strong> <strong>Sales</strong> <strong>and</strong> <strong>Service</strong> <strong>International</strong><br />
• Business overview<br />
• Opportunities in mature<br />
<strong>and</strong> emerging markets<br />
• Conclusions<br />
2
<strong>Global</strong> <strong>Sales</strong> <strong>and</strong> <strong>Service</strong> <strong>International</strong><br />
• GSSI drives growth<br />
in 11 key markets<br />
• Key markets are<br />
entrepreneurial entities<br />
• GSSI Head Office is<br />
small <strong>and</strong> focused<br />
• GSSI is characterized<br />
by two distinct markets<br />
3
Emerging Markets in GSSI<br />
MCR EMEA, LATAM, Asia Pacific <strong>and</strong> China<br />
4
Mature Markets in GSSI<br />
DACH, Adria, Iberia, France, Japan, UK&Irel<strong>and</strong> <strong>and</strong> Benelux<br />
5
Characteristics APAC, LATAM <strong>and</strong> EMEA market<br />
• Total GSSI medical equipment market<br />
is € 11B<br />
• This is 50% of global market<br />
– EMEA 50% of GSSI market<br />
– Asia 43% of GSSI market<br />
– Latin America 7% of GSSI market<br />
• 2006 market growth in these regions:<br />
5% compared to 2005<br />
• Mature: 60% of GSSI, with a 4% growth<br />
in 2006 compared to 2005<br />
• Emerging: 40% of GSSI, with an 8%<br />
growth in 2006 compared to 2005<br />
EMERGING<br />
APAC<br />
EMEA<br />
MATURE<br />
LATAM<br />
6
Agenda<br />
• <strong>Global</strong> <strong>Sales</strong> <strong>and</strong> <strong>Service</strong> <strong>International</strong><br />
• Business overview<br />
• Opportunities in mature<br />
<strong>and</strong> emerging markets<br />
• Conclusions<br />
7
Highlights: spectacular growth in Japan<br />
• In 2006 <strong>Philips</strong> Medical Systems Japan<br />
achieved 27% sales growth<br />
• A package deal with 17 Magnetic<br />
Resonance Imaging Systems to<br />
a public hospital group<br />
• 3Tesla Achieva with an order intake of<br />
23 systems <strong>and</strong> 56% market share<br />
• AED sales in Japan increased by<br />
200% exceeding 24,000 unit sales<br />
8
Highlights: large deals in Asia<br />
• Thail<strong>and</strong>: Phyathai Hospitals Group<br />
purchasing cross modality equipment<br />
valued at 12.4 million Euro<br />
• Korea: Samsung Medical Center<br />
purchased 9.4 million Euro for their<br />
cancer center<br />
• Greater China: Ascent Profit to bring<br />
200 high-end radiography systems to<br />
hospitals in China. The 27 million<br />
Euro contract will provide improved<br />
care to millions of patients<br />
Phyathai Hospital<br />
9
Highlights: cardiology in Singapore<br />
• <strong>Philips</strong> strengthens its position as<br />
cardiology leader in Asia<br />
• Collaboration with the National Heart<br />
Centre (NHC) Singapore<br />
• Yearly premier cardiology conference<br />
which attracts over 1,000 medical<br />
professionals from across Asia Pacific<br />
10
Highlights: partnership deal in India<br />
• <strong>Philips</strong> Medical Systems <strong>and</strong> Artemis<br />
Health Institute signed our largest<br />
healthcare research partnership<br />
in India<br />
• <strong>Philips</strong> won this 5.4 million euro<br />
strategic deal due to our research<br />
capabilities<br />
“This strategic technology partnership will help Artemis deliver international quality,<br />
best in class healthcare services to its patients.”<br />
Dr. Kushagra Katariya,<br />
Executive Director <strong>and</strong> Chief Executive, Artemis Health Sciences<br />
11
On track with ambition in Asia to grow to<br />
1.3 billion in 2008<br />
PMS <strong>Sales</strong> to third<br />
~ 700 Mln Euro<br />
> 1,000 Mln Euro<br />
1,300 Mln Euro<br />
2003 2006 2008<br />
Mature - Japan, Australasia, Korea Emerging - China, India, ASEAN<br />
12
Highlights: strong growth in emerging markets<br />
• We combined forces in Eastern<br />
Europe, Middle-East <strong>and</strong> Africa<br />
• We invested in people creating<br />
a dedicated group of highly<br />
talented people<br />
• We replaced the traditional<br />
regional <strong>and</strong> G2M structure with<br />
a hub structure<br />
• Result was a sales growth of<br />
15% in 2006 compared to 2005<br />
13
Highlights: patient focus e.g. in Italy<br />
• Parma University Hospital, <strong>Philips</strong> <strong>and</strong><br />
Walt Disney Company built an ambient<br />
experience solution with Disney figures<br />
• Disney's contribution came through their<br />
"hospital of colors" project, decorating<br />
the children's waiting room with<br />
characters from "The Little Mermaid"<br />
• Disney <strong>and</strong> <strong>Philips</strong> introduced this<br />
solution during a press conference held<br />
on January 25 th in Parma<br />
14
Highlights: <strong>Philips</strong> Medical Capital drives growth<br />
The <strong>Philips</strong> Medical Capital (PMC) program started in 2005 <strong>and</strong><br />
now delivers a substantial amount of business for GSSI.<br />
A few examples:<br />
• PMC France financed 33% of all CT <strong>and</strong> MRI deals<br />
• In Q1 PMC Germany financed 40% of equipment deals<br />
• PMC Asia started its activities in the summer of 2006<br />
<strong>and</strong> has build a healthy funnel of $ 79M worth of deals since<br />
• After only 6 weeks of the PMC launch in China, the program<br />
secured its first financing deal in the country<br />
• PMC Spain has financed 20% of the PMS business <strong>and</strong><br />
outperformed all expectations<br />
<strong>Philips</strong> Medical Capital enables customers to use technology<br />
without owning it <strong>and</strong> enables us to build long term relationships.<br />
15
Agenda<br />
• <strong>Global</strong> <strong>Sales</strong> <strong>and</strong> <strong>Service</strong> <strong>International</strong><br />
• Business overview<br />
• Opportunities in mature<br />
<strong>and</strong> emerging markets<br />
• Conclusions<br />
16
Mature Markets Analysis<br />
Professionalisation<br />
Change in healthcare<br />
structure<br />
• Privatization <strong>and</strong> specialization<br />
• Patient acts as consumer<br />
Demographics <strong>and</strong> lifestyle<br />
Politics<br />
Related value drivers/root causes<br />
Change in business models<br />
• Disease related funding<br />
• Partnerships & outsourcing<br />
Profitable Growth<br />
Strengthen Partnership Models<br />
Move to integral care cycle solutions<br />
Build on our strong installed base<br />
Accessibility, Quality<br />
Change in clinical applications<br />
• Oncology<br />
• Cardiology<br />
17
Emerging Markets Analysis<br />
Availability of Funds<br />
Change in healthcare<br />
structure<br />
• Top private layer is growing<br />
• Emerging middle class<br />
Economic development <strong>and</strong> stability<br />
Politics<br />
Related value drivers/root causes<br />
Change in business models<br />
• Large scale public projects<br />
• Low <strong>and</strong> mid end solutions<br />
Aggressive Growth<br />
Local solutions<br />
Exp<strong>and</strong> low <strong>and</strong> mid end portfolio<br />
Channel expansion<br />
Accessibility, Quality<br />
Change in clinical applications<br />
• Tuberculosis <strong>and</strong> Aids<br />
• Oncology <strong>and</strong> Cardiology<br />
18
Agenda<br />
• <strong>Global</strong> <strong>Sales</strong> <strong>and</strong> <strong>Service</strong> <strong>International</strong><br />
• Business overview<br />
• Opportunities in mature<br />
<strong>and</strong> emerging markets<br />
• Conclusions<br />
19
Mature <strong>and</strong> emerging market mix drives growth<br />
• Shared structure increases speed <strong>and</strong> efficiency<br />
• Portfolio integration via care cycle approach helps to grow long term<br />
strategic relationships in all markets<br />
• Partnership models help customers focus on patient<br />
• Mid <strong>and</strong> low end solutions will exp<strong>and</strong> market share <strong>and</strong> drive<br />
growth in both emerging <strong>and</strong> mature markets<br />
• Local solutions approach in emerging markets helps increase<br />
market share<br />
<strong>Global</strong> <strong>Sales</strong> <strong>and</strong> <strong>Service</strong> <strong>International</strong> is a strong organization<br />
leveraging knowledge <strong>and</strong> expertise in both developed <strong>and</strong> emerging markets<br />
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