Koninklijke Philips N.V. (PHG) Q4 2022 Earnings Call Transcript

For the period ending December 31, 2022

January 30, 2023 4:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Welcome to the Royal Philips Q4 and Full Year 2022 Results and Creating Value with Sustainable Impact Conference Call on Monday, 30th of January 2023.

During the call, hosted by Mr. Roy Jakobs, CEO, and Mr. Abhijit Bhattacharya, CFO, all participants will be in a listen-only mode. After the introduction, there will be an opportunity to ask questions. Please note that this call will be recorded and replay will be available on the Investor Relations website of Royal Phillips. [Operator Instructions]

Leandro Mazzoni

Hi, everyone. Welcome to the Philips' fourth quarter and full year 2022 results webcast. I am here with our CEO, Roy Jakobs, and our CFO, Abhijit Bhattacharya. We're also joined today by Shez Partovi, Chief Strategy and Innovation Officer; Wim Appelo, Chief Operations Officer; and Francis Kim, Head of Quality.

I would like to first go through the agenda for today's webcast. We will start with a discussion of our fourth quarter and full year 2022 results. We will then talk about how we will create value with sustainable impact with presentations about our focused organic growth and scalable innovation strategy and our three execution priorities: Patient safety and quality, supply chain and operating model simplification. We will wrap up with our value creation trajectory. We will have a session of around 70 minutes, followed by Q&A.

The press release, slide deck and frequently asked questions on the Respironics recall were published on our Investor Relations website this morning. The replay and full transcript of this webcast will be available on the website as well.

Before we start, I want to draw your attention to our safe harbor statement on screen. You will also find the statement in the presentation published on our Investor Relations website.

With that, I'll hand over to Abhijit.

Abhijit Bhattacharya

Thanks, Leandro. Good morning, and welcome, everyone.

Let me start with our group performance and profitability in the quarter. Comparable sales growth was just over 3%, driven by improved component supplies in particular, in hospital patient monitoring, Image-Guided Therapy and Ultrasound. We delivered growth of 5% for Diagnosis & Treatment and Connected Care businesses on a comparable basis, which was partly offset by a decline in Personal Health due to China and Russia. Although the component supply situation is improving, the situation remains challenging, as we anticipate gradual improvements during the year.