Day: January 24, 2022

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S. Korea Reports 7,513 More Covid-19 Cases

SEOUL, Jan 24 (NNN-YONHAP) – South Korea reported 7,513 more cases of COVID-19, as of midnight, compared to 24 hours ago, raising the total number of infections to 741,413.

 

The daily caseload stayed above 7,000 for the third consecutive day, amid the spread of the Omicron variant, which the health authorities said became a dominant strain here.

 

The recent resurgence was attributable to small cluster infections in the Seoul metropolitan area.

 

Of the new cases, 1,626 were Seoul residents. The number of newly infected people living in Gyeonggi province and the western port city of Incheon was 2,391 and 552, respectively.

 

The virus also raged in non-metropolitan region. The number of new infections in the non-capital areas was 2,590, or 36.2 percent of the total local transmission.

 

Among the new cases, 354 were imported from overseas, lifting the total to 23,753.

 

The number of infected people who were in a serious condition stood at 418, down 13 from the previous day.

 

Twenty-five more deaths were confirmed, bringing the death toll to 6,565. The total fatality rate was 0.89 percent.

 

The country administered vaccines to 44,569,299 people, or 86.9 percent of the total population, and the number of fully inoculated people was 43,803,685, or 85.4 percent of the population.

 

The number of those who received booster jabs was 25,245,905, or 49.2 percent of the population.

 

Source: NAM NEWS NETWORK

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SPEECH BY MR ONG YE KUNG, MINISTER FOR HEALTH, AT THE OFFICIAL OPENING CEREMONY OF SINGHEALTH TOWER AND OUTRAM COMMUNITY HOSPITAL (OCH) AT OCH MULTI-PURPOSE FUNCTION ROOM, 24 JANUARY 2022, 9.30AM

Mr Cheng Wai Keung

Chairman, SingHealth

 

Professor Ivy Ng

Group CEO, SingHealth

 

Ms Margaret Lee

CEO, SingHealth Community Hospitals

 

Our community partners,

 

Ladies and Gentlemen,

 

Good morning.

 

  1. Before I start, I would like to thank all our healthcare workers. It has been two years of very difficult work and we have another challenge ahead of us because of the Omicron wave. It is a different wave but notwithstanding that, we know that as the wave peaks, and in the coming weeks it will – it will assert pressure again on our healthcare system.

 

  1. There are three areas that we particularly watch – one is the intensive care unit (ICU). Over the weekend, ICU bed occupancy numbers dropped from 13 to, as of last night, nine. We have a couple of Omicron patients needing ICU care but they are non-intubated. So we keep our fingers crossed that the ICU situation will remain stable.

 

  1. The other area that we look closely at is hospitalisation itself. As of now, about 1.3 percent of Omicron cases resulted in hospitalisation, about 0.3 percent require oxygen supplementation and thankfully, usually short – two, three days. The maximum so far has been five days for one case. The numbers have been creeping up in both absolute numbers as well as percentage. It used to be 0.2 percent and over the weekend, 0.3 percent. It has slightly exceeded 0.3 percent. Every 0.1 percent occupies a lot more beds, as we all know.

 

  1. The third area is what I and many of you are most worried about. It is the impact on our manpower and we have seen it in many other countries. It is not so much that the beds are filling up so fast, but the fact that our manpower is isolated, because of infection or as close contacts. We have adjusted our healthcare protocols, including for hospitals, in line with the science and behaviour of this virus. So isolation is down from 10 days to seven days, and between Protocols 1 and 2, the tracks are now porous. You can smoothly transit from one to another. So you may be on seven-day isolation but along the way if you are fine, after 72 hours with an Antigen Rapid Test (ART) negative test, you can come back to work.

 

  1. All these will help. But we need to take precautions, and protect our workforce – which is why the Ministry of Health (MOH) had to make the difficult decision to suspend hospital visits again, for another four weeks. It is difficult for the patients and their families. But we are facing a peak of a wave and we have to ride through this, including some of these painful measures. As a result too, today while we are opening our community hospital, there shall be no visit to the hospital, and we will celebrate the opening right here.

 

  1. It is my pleasure to join you here in the official opening of the SingHealth Tower and Outram Community Hospital (OCH) today.

 

Continuous Investment in Healthcare Infrastructure

 

  1. The Singapore General Hospital (SGH) Campus Masterplan was announced by the Prime Minister about five years ago, in 2016. Since then, the campus has been undergoing major development – to improve its facilities and enhance capacity for our growing healthcare needs.

 

  1. There are several key developments under this Masterplan. First, the new National Cancer Centre, which is progressing well and slated to open later part of this year. Second, the Emergency Medicine Building, which will open progressively from 2024. This will be followed by the new SGH Elective Care Centre and National Dental Centre scheduled to open by 2027.

 

  1. These developments, and OCH that we are opening today, form Phase One of the SGH Campus Master Plan development. The total development budget for Phase One is around $4 billion. In Phase Two, we will develop the new SGH Complex, together with an improved internal road network.

 

  1. All these are part of the Government’s continuous investment in public infrastructure, for the benefit of Singaporeans. The entire Campus development is going to take another 15 years or so to complete. Beyond the investment of resources, the entire project requires very meticulous planning and execution.

 

  1. For example, services and roads need to be carefully shifted so as not to disrupt operations in one of the busiest and oldest hospitals in Singapore. Further, SGH is now 200 years old and this year 201 years old, we are taking great efforts to preserve its heritage features and structures, such as the clock tower in Bowyer Block. The College of Medicine and Tan Teck Guan buildings, where my office is, will certainly also be preserved.

 

Additions to the SGH Campus

 

  1. As part of the Masterplan development, we are adding two significant features to the Campus today.

 

  1. First, the SingHealth Tower, which plays a central and strategic role for the SGH Campus. It houses key facilities like the Campus Logistics Hub, Central Kitchen and Sterile Supplies Unit, and administrative staff offices, all of which are also key to supporting the day-to-day operations of SGH and other institutions on the Campus.

 

  1. These are the silent workers, always in the background. They are essential to any organisation, any Campus. However, in this age of social media and round the clock running of the publicity machinery, we can easily forget their vital contribution, until something goes wrong. I am glad the SingHealth has now provided them with a more pleasant and conducive work environment.

 

  1. Second, the OCH. Community hospitals have always played an important role in our public healthcare system in helping patients to recover, rehabilitate and reintegrate into the community. OCH is the ninth community hospital in Singapore and one of three under SingHealth. The others are Bright Vision Hospital and Sengkang Community Hospital.

 

  1. OCH, which has a total of 545 beds, is located in the 19-storey SingHealth Tower. It is situated next to SGH, which helps ensure integrated and seamless care across the acute and community hospital on this Campus.

 

  1. At OCH, programmes and activities are carefully designed to keep elderly patients mentally and physically engaged during their stay in the community hospital. Some initiatives that have been piloted at other community hospitals before being rolled out here, such as the Integrated Primary Care for At-Risk Elderly programme, which connects discharged patients with GPs in their neighbourhood to continue post-discharge care.

 

  1. Another meaningful programme, which will be rolled out in OCH is the Social Prescribing Programme. The programme will equip patients at the OCH with essential life skills, such as knowing how to use a smart phone, and applications such as WhatsApp and QR code scanning. These skills will help the patients connect with their friends and loved ones, and lead a meaningful and active life after discharge. Better than before they got admitted to the hospital.

 

  1. For patients at their end of life, there is a range of activities to cater to the needs and preferences of patients and their families. For those who cannot be cared for at home, OCH provides Inpatient Hospice Palliative Care Services. The palliative care team offers assistance to alleviate symptoms, and also attends to the patient’s psychosocial needs, enabling them to live out their final days in dignity and with comfort.

 

  1. For those who wish to remain at home, there is also a day hospice service for palliative patients located in OCH. It is run by HCA Hospice Care, and is the first day hospice to be co-located in a community hospital.

 

  1. We are deeply thankful that OCH opened in November 2019, just before our nation was struck by COVID-19. As a result, SingHealth could use OCH wards to augment bed capacity whenever there was a surge in COVID-19 cases.

 

  1. OCH has also supported the operations of Bright Vision Hospital, since it was converted to a COVID-19 Treatment Facility. The great majority of COVID-19 patients recover well from home, but there is also a small group of recovered COVID-19 patients who are elderly and frail with existing medical conditions, and need rehabilitation and care at community hospitals. OCH has been receiving these patients and providing the necessary care and rehabilitation. Thank you very much for being part of this battle.

 

Conclusion

 

  1. Congratulations on the official opening of SingHealth Tower and the OCH. I am confident that we will continue to push the boundaries of care and improve healthcare outcomes. With this, I am happy to declare the SingHealth Tower and Outram Community Hospital officially open. I wish everybody Happy Chinese New Year, a Happy Year of the Tiger, and may we rise above all our challenges. Thank you.

 

Source: Ministry of Health, Singapore

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DHL EXPRESS (SINGAPORE) PTE LTD PRESENTED WITH COMMUNITY PARTNERSHIP AWARD

On 20 January 2022, Ang Mo Kio Police Division presented the Community Partnership Award (Organisation) to DHL Express (Singapore) Pte Ltd. The award was given in recognition for their contributions and strong partnership with the Police in the fight against scams.

 

Organisation Commended for Community Partnership Award

 

DHL Express (Singapore) Pte Ltd has been a member of the Safety Security Watch Group (SSWG) with Hougang Neighbourhood Police Centre since 2017. The SSWG is a platform that enables the business community to work alongside the Police to support and prepare their employees to fight crime and terrorism threats. Due to their strong commitment, DHL Express (Singapore) Pte Ltd received the ‘Outstanding SSWG Award’ in 2018.

 

In October 2021, DHL Express (Singapore) Pte Ltd and Hougang Neighbourhood Police Centre collaborated to develop and implement a one-month initiative to combat the surge of scams in Singapore. The initiative, Spot the Signs. Delivered by DHL, comprised a pocket-sized e-commerce scam advisory that was distributed with the deliveries made by DHL’s couriers to residential houses and businesses in Ang Mo Kio, Hougang, Serangoon, Sengkang and Punggol estates.

 

In December 2021, the collaboration further expanded to a two-month island-wide distribution exercise. During this phase, the anti-scam advisories distributed by DHL’s couriers were focused on raising awareness on e-commerce scams and job scams. Anti-scam advisory sticker labels were also affixed onto the DHL parcels and distributed to various parcel pick-up points in Singapore.

 

DHL Express (Singapore) Pte Ltd has displayed strong support and commitment in spreading anti-scam awareness messages to the wider community in Singapore. This collaboration showcases the close working partnership between the Police and community stakeholders.

 

Assistant Commissioner of Police (AC) Zed Teo, Commander of Ang Mo Kio Police Division, expressed his appreciation to DHL Express (Singapore) Pte Ltd for their partnership with the Police. He said, “This initiative will most certainly go a long way in protecting our residents from scams. The Police thank DHL Express for their public-spiritedness and corporate social responsibility. I look forward to an even stronger partnership in the future.”

 

Source: Singapore Police Force

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New ASEAN Initiative Emphasizes Education as Key to Media Literacy and Countering Disinformation

Jakarta, INDONESIA January 24, 2022 – On the International Day of Education, the Association of Southeast Asian Nations (ASEAN) Senior Officials Meeting on Education (SOM-ED), with the support of the U.S. government, led by the U.S. Agency for International Development (USAID), launched a comprehensive Training-of-Trainers Program to Counter Disinformation and Promote Media Literacy. The Training-of-Trainers Program will help strengthen education on media literacy, counter disinformation in the region, and serve as a valuable resource for educators to enhance critical thinking among students about the impacts of information technology and social media in society, including the threats posed by disinformation.

 

Noting the negative implications of disinformation on democracy as well as the importance of media and information to foster peace education and moderation values as well as combat fake news, SOM-ED Philippines leader, Wilfredo E. Cabral, underscored the significance and timeliness of the initiative. He said, “Along with our partners, ASEAN education sectors are pushing for the continuous inclusion of media and information literacy skills subject matter to address disinformation and promote media literacy in the curriculum. We also deem media and information literacy important as it identifies the need to produce learners who are knowledgeable on the evolution from traditional to new media, types of media, and the legal, ethical, and societal issues related to media and information dissemination.”

 

Attended by over 80representatives of the ASEAN youth, education, and information sectors; the Association of Southeast Asian Teacher Education Network; the ASEAN Foundation; and civil society and private sector representatives, stakeholders had an opportunity to provide inputs on next steps to disseminate the training resource regionally. USAID, through the USAID-ASEAN Partnership for Regional Optimization in the Political Security and Socio-cultural Communities (PROSPECT) project, will continue to work with the ASEAN education sector to pilot the Training-of-Trainers Program later this year.

 

Dr. Steven G. Olive, Mission Director, USAID Regional Development Mission for Asia, emphasized the mutual concern and need for collaboration in enhancing youth awareness and ability to navigate a digital landscape where disinformation is increasingly problematic. He stated, “In Southeast Asia, the United States, and across the globe, we are witnessing the harmful impacts of disinformation–from societal polarization to stoking violent extremism, and hampering pandemic response and vaccination efforts. Despite being digital natives, youth are not immune to disinformation. To help advance a free and open Indo-Pacific region, USAID is working closely with ASEAN stakeholders to build resilience and inclusivity across ASEAN member states by bolstering critical thinking skills through media literacy education initiatives.”

 

Source: U.S. Mission to ASEAN

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Philips delivers Q4 sales of EUR 4.9 billion and income from continuing operations of EUR 139 million; Adjusted EBITA margin amounts to 13.1%, operating cash flow is EUR 720 million; good demand drives mid-single-digit order intake growth

January 24, 2022

Fourth-quarter highlights

  • Group sales amounted to EUR 4.9 billion, with a 10% comparable sales decline
  • Comparable order intake increased 4%, driven by double-digit growth in the Diagnosis & Treatment businesses
  • Income from continuing operations amounted to EUR 139 million and included an impact of EUR 220 million related to the addition to the Respironics field action provision; income from continuing operations was EUR 508 million in Q4 2020
  • Adjusted EBITA of EUR 647 million, or 13.1% of sales, compared to EUR 995 million, or 19.0% of sales, in Q4 2020
  • Operating cash flow was EUR 720 million, resulting in a free cash flow of EUR 519 million

Full-year highlights

  • Group sales amounted to EUR 17.2 billion, with high-single-digit comparable sales growth in the Diagnosis & Treatment and Personal Health businesses, offset by a decline in the Connected Care businesses, resulting in a 1% comparable sales decline
  • Comparable order intake increased 4%, driven by double-digit growth in the Diagnosis & Treatment businesses
  • Income from continuing operations was EUR 612 million and included an impact of EUR 719 million related to the Respironics field action provision; income from continuing operations was EUR 999 million in 2020
  • Adjusted EBITA of EUR 2,054 million, or 12.0% of sales, compared to EUR 2,277 million, or 13.2% of sales, in 2020
  • Operating cash flow was EUR 1,629 million, resulting in a free cash flow of EUR 900 million
  • Proposed dividend maintained at EUR 0.85 per share, in cash or shares at the option of the shareholder

Frans van Houten, CEO of Royal Philips:

“In the fourth quarter, we recorded EUR 4.9 billion sales, reflecting a 10% comparable sales decline, with an Adjusted EBITA margin of 13.1%. As we announced on January 12, 2022, sales were impacted by several headwinds, namely supply chain challenges, postponement of equipment installations in hospitals related to COVID-19, and the consequences of the Respironics field action.

Our strategy and portfolio continue to resonate very well with customers and consumers, generating good demand for our products and solutions. For the full year, I am pleased with the 8% comparable sales growth in the Diagnosis & Treatment businesses and 9% growth in the Personal Health businesses. Connected Care sales declined, resulting in a 1% comparable sales decrease for the Group. The aforementioned headwinds had a combined impact of 5 percentage-points on the Group’s full year comparable sales.

Group comparable order intake growth also remained robust throughout the year, with 4% growth for the full year, driven by double-digit growth in the Diagnosis & Treatment businesses. This further builds on the high-single-digit Group comparable order intake growth in 2020, resulting in an all-time-high order book. During 2021, we signed 80 long-term strategic partnerships and launched innovations such as the Spectral CT 7500 to support a precision diagnosis, as well as expanding our Azurion image-guided therapy platform with breakthrough applications to innovate minimally invasive treatments. We also continued to help consumers take better care of their health with our personal health offerings.

Patient well-being is at the heart of everything we do at Philips, and we remain extremely focused on repairing and replacing the devices related to the Philips Respironics recall notification. We are conducting a comprehensive test and research program and provided an update in December on the positive VOC test results related to the first-generation DreamStation devices.

Based on good customer demand and our growing order book, we expect to resume our growth and margin expansion trajectory in the course of 2022. In the short term, however, we continue to see significant volatility and headwinds related to COVID-19 and supply chain challenges, despite our ongoing mitigation efforts. Due to this, the Respironics field action and the 9% comparable sales growth in Q1 2021, we expect to start the year with a comparable sales decline, followed by a recovery and strong second half of the year. For the full year, we target to deliver 5-6% comparable sales growth excluding Sleep & Respiratory Care. For the Group, we target 3-5% comparable sales growth and a 40-90 basis-points improvement in Adjusted EBITA margin.”

Business segment performance
Driven by Philips’ attractive portfolio, comparable order intake for the Diagnosis & Treatment businesses increased 10%, with double-digit growth in Image-Guided Therapy and mid-single digit growth in Ultrasound in the fourth quarter. Comparable sales were in line with Q4 2020, with double-digit growth in Image-Guided Therapy, offset by declines in Ultrasound and Diagnostic Imaging. The Adjusted EBITA margin was 13.0% in the quarter, mainly impacted by lower sales due to supply chain headwinds. For the full year, the Diagnosis & Treatment businesses recorded 8% comparable sales growth and an Adjusted EBITA margin of 12.4%.

The Connected Care businesses’ comparable order intake declined 10% on the back of high COVID-19-generated demand in Q4 2020. Hospital Patient Monitoring orders showed continued growth in Q4 2021, driven by the ongoing structural increase in adoption of patient care management solutions in both high- and low-acuity care settings in the hospital. Comparable sales decreased 32% in the fourth quarter following the aforementioned high COVID-19-generated demand in Q4 2020, and a double-digit decline in Sleep & Respiratory Care in Q4 2021, because of the Respironics field action. The Adjusted EBITA margin amounted to 11.7% in the quarter, mainly impacted by the decline in sales. For the full year, the Connected Care businesses recorded a 23% comparable sales decrease and an Adjusted EBITA margin of 10.6%.

The Personal Health businesses’ comparable sales decreased 3%, mainly impacted by supply chain shortages. The Adjusted EBITA margin increased to 21.6%, mainly driven by productivity measures. For the full year, the Personal Health businesses delivered 9% comparable sales growth and an increased Adjusted EBITA margin of 17.6%.

Philips’ ongoing focus on innovation and partnerships resulted in the following key developments in the quarter and the year:

  • In 2021, Philips’ products and solutions improved the lives of 1.7 billion people, including 167 million people in underserved communities. In addition, Philips was again recognized for its leading sustainability performance in the 2021 Dow Jones Sustainability Indices and CDP’s Climate Change A-list.
  • Philips signed 35 new long-term strategic partnerships in North America, Europe and Asia, including a 10-year agreement with a large integrated healthcare system in the US for advanced patient monitoring and enterprise imaging solutions, as well as analytics and services to enhance operational outcomes and performance.
  • Philips further expanded its leading image-guide therapy portfolio through the acquisition of Vesper Medical, adding a venous stenting solution to address the root cause of chronic deep venous disease and enhance patient care. This will complement Philips’ strong IVUS offering in venous imaging and expand the company’s growth in the vascular therapy market.
  • Building on the ambulatory cardiac diagnostics and monitoring solutions resulting from the BioTelemetry acquisition, Philips acquired Cardiologs, adding a vendor-neutral heart disorder screener and ECG analysis applications based on machine learning algorithms. This technology will accelerate diagnostic reporting and streamline clinician workflow and patient care.
  • Philips has provided The First Affiliated Hospital of Zhengzhou University – one of the biggest hospitals in the world, with more than 10,000 beds – with a range of advanced diagnostic imaging and image-guided therapy systems, including IQon Spectral CT and the Azurion image-guided therapy platform.
  • Expanding Philips’ unique helium-free operating MR imaging portfolio, the company received FDA clearance for its new MR 5300 system. Powered by AI, the MR 5300 simplifies and automates complex clinical and operational tasks for imaging departments to help accelerate workflows and improve access to affordable, quality care.
  • Further expanding the company’s comprehensive CT portfolio, Philips introduced the new CT 5100 Incisive with CT Smart Workflow, comprising AI-enabled capabilities designed to accelerate workflows, enhance diagnostic confidence, and maximize system up-time.
  • Highlighting the company’s leading position in high-acuity care settings, Philips received FDA clearance for the IntelliVue MX750 and MX850 patient monitors, which are uniquely designed to support scalability, alarm management, cybersecurity, and enhanced infection prevention within the hospital.
  • Philips completed the successful roll-out of the Sonicare 9900 Prestige in North America, China, Europe, Middle East and Asia Pacific. The premium electric toothbrush finished #1 in the Stiftung Warentest, Europe’s leading consumer organization. Philips further expanded its oral healthcare portfolio with the launch of innovative interdental cleaning devices in North America, China and Asia Pacific.

Capital allocation
In the fourth quarter, Philips completed the EUR 1.5 billion share repurchase program for capital reduction purposes that was initiated in the first quarter of 2019. Under the share buyback program that was announced on July 26, 2021, Philips acquired a total of approximately 21.8 million shares in the fourth quarter and in January 2022 through open market purchases. In previous quarters, Philips had already entered into a number of forward transactions with settlement dates in 2022, 2023 and 2024.

Philips completed the cancellation of 33.5 million of its shares that were acquired under both repurchase programs. Further details on Philips’ current repurchase program and previous programs can be found here.

Philips Respironics field action
As announced on January 12, 2022, Philips Respironics is increasing the field action provision by EUR 220 million, mainly due to the higher volume of registered devices eligible for remediation, following the comprehensive customer and patient outreach program in the fourth quarter, and increased supply costs.

Philips Respironics has submitted a comprehensive response and action plan in connection with the November 2021 Form-483 to the FDA, which are being evaluated. Philips Respironics continues to engage with the FDA and other relevant competent authorities.

In December 2021, Philips provided an update on the VOC test results to date for the first-generation DreamStation devices. The results indicate that the VOC concentrations are within safe exposure limits specified in the applicable safety standard (ISO 18562). Comprehensive particulate testing and analyses are expected to be completed in the second quarter of 2022.

To date, Philips Respironics has produced a total of approximately 1.5 million repair kits and replacement devices – of which approximately 750,000 have reached customers – and aims to complete the repair and replacement program in the fourth quarter of 2022.

As previously disclosed, in relation to the affected devices, Philips Respironics is a defendant in several class-action lawsuits and individual personal injury claims. Given the uncertain nature and timing of the relevant events and potential associated obligations, if any, the company is unable to reliably estimate the financial effect of these matters.

Cost savings
Gross cost savings amounted to EUR 91 million in the fourth quarter, and EUR 398 million for the full year 2021. After deducting cost increases related to increases in supply costs, net savings amounted to EUR 19 million in the fourth quarter, and EUR 279 million for the full year.

Click here to view the release online

For further information, please contact:


Ben Zwirs
Philips Global Press Office
Tel.: +31 6 1521 3446
E-mail: ben.zwirs@philips.com

Derya Guzel
Philips Investor Relations
Tel.: +31 20 59 77055
E-mail: derya.guzel@philips.com


About Royal Philips

Royal Philips (NYSE: PHG, AEX: PHIA) is a leading health technology company focused on improving people’s health and well-being, and enabling better outcomes across the health continuum – from healthy living and prevention, to diagnosis, treatment and home care. Philips leverages advanced technology and deep clinical and consumer insights to deliver integrated solutions. Headquartered in the Netherlands, the company is a leader in diagnostic imaging, image-guided therapy, patient monitoring and health informatics, as well as in consumer health and home care. Philips generated 2021 sales of EUR 17.2 billion and employs approximately 78,000 employees with sales and services in more than 100 countries. News about Philips can be found at www.philips.com/newscenter.

Forward-looking statements and other important information

Forward-looking statements

This document and the related oral presentation, including responses to questions following the presentation, contain certain forward-looking statements with respect to the financial condition, results of operations and business of Philips and certain of the plans and objectives of Philips with respect to these items. Examples of forward-looking statements include: statements made about our strategy; estimates of sales growth; future Adjusted EBITA; future restructuring and acquisition-related charges and other costs; future developments in Philips’ organic business; and the completion of acquisitions and divestments. By their nature, these statements involve risk and uncertainty because they relate to future events and circumstances and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these statements.

These factors include but are not limited to: changes in industry or market circumstances; economic, political and societal changes; Philips’ increasing focus on health technology and solutions; the successful completion of divestments; the realization of Philips’ objectives in growth geographies; business plans and integration of acquisitions; securing and maintaining Philips’ intellectual property rights, and unauthorized use of third-party intellectual property rights; COVID-19 and other pandemics; breaches of cybersecurity; IT system changes or failures; the effectiveness of our supply chain; challenges to drive operational excellence, productivity and speed in bringing innovations to market; attracting and retaining personnel; future trade arrangements following Brexit; compliance with regulations and standards, including quality, product safety and data privacy; compliance with business conduct rules and regulations; treasury risks and other financial risks; tax risks; costs of defined-benefit pension plans and other post-retirement plans; reliability of internal controls, financial reporting and management process. As a result, Philips’ actual future results may differ materially from the plans, goals and expectations set forth in such forward-looking statements. For a discussion of factors that could cause future results to differ from such forward-looking statements, see also the Risk management chapter included in the Annual Report 2020.

Philips has recognized a provision related to the voluntary recall notification in the US/field safety notice outside the US for certain sleep and respiratory care products, based on Philips’ best estimate for the expected field actions. The future developments are subject to significant uncertainties, which require management to make estimates and assumptions about items such as quantities, costs to repair or replace, and duration. Actual outcomes in future periods may differ from these estimates and affect the company’s results of operations, financial position and cash flows.

Third-party market share data

Statements regarding market share, contained in this document, including those regarding Philips’ competitive position, are based on outside sources such as specialized research institutes, industry and dealer panels in combination with management estimates. Where information is not yet available to Philips, market share statements may also be based on estimates and projections prepared by management and/or based on outside sources of information. Management’s estimates of rankings are based on order intake or sales, depending on the business.

Market Abuse Regulation

This press release contains inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.

Use of non-IFRS information

In presenting and discussing the Philips Group’s financial position, operating results and cash flows, management uses certain non-IFRS financial measures. These non-IFRS financial measures should not be viewed in isolation as alternatives to the equivalent IFRS measure and should be used in conjunction with the most directly comparable IFRS measures. Non-IFRS financial measures do not have standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. A reconciliation of these non-IFRS measures to the most directly comparable IFRS measures is contained in this document. Further information on non-IFRS measures can be found in the Annual Report 2020.

Use of fair value information

In presenting the Philips Group’s financial position, fair values are used for the measurement of various items in accordance with the applicable accounting standards. These fair values are based on market prices, where available, and are obtained from sources that are deemed to be reliable. Readers are cautioned that these values are subject to changes over time and are only valid at the balance sheet date. When quoted prices or observable market data are not readily available, fair values are estimated using appropriate valuation models and unobservable inputs. Such fair value estimates require management to make significant assumptions with respect to future developments, which are inherently uncertain and may therefore deviate from actual developments. Critical assumptions used are disclosed in the Annual Report 2020. In certain cases independent valuations are obtained to support management’s determination of fair values.

Presentation

All amounts are in millions of euros unless otherwise stated. Due to rounding, amounts may not add up precisely to totals provided. All reported data is unaudited. Financial reporting is in accordance with the accounting policies as stated in the Annual Report 2020 except for the adoption of new standards and amendments to standards which are also expected to be reflected in the company’s consolidated IFRS financial statements as at and for the year ending December 31, 2021.

On September 1, 2021, Philips completed the sale of the Domestic Appliances business. The results of this transaction, which Philips announced on March 25, 2021, are presented under Discontinued Operations in this report. Comparative results have been restated to reflect the treatment of the Domestic Appliances business as a discontinued operation since Q1 2021. Further details of the restatement have been published on the Philips Investor Relations website and can be accessed here.

Prior-period amounts have been reclassified to conform to the current-period presentation; this includes immaterial organizational changes.