Philips announces its 2022 Third Quarter Outcomes – News


Ahead-on the lookout statements

This document and the similar oral presentation, like responses to concerns pursuing the presentation, have particular forward-hunting statements with respect to the economical situation, benefits of functions and enterprise of Philips and certain of the plans and aims of Philips with regard to these items. Illustrations of forward-on the lookout statements include things like statements designed about our technique, estimates of profits growth, long run Adjusted EBITA*), future restructuring and acquisition- similar charges and other fees, long term developments in Philips’ organic organization and the completion of acquisitions and divestments. Ahead-wanting statements can be determined typically as all those made up of terms these types of as “anticipates”, “assumes”, “believes”, “estimates”, “expects”, “should”, “will”, “will most likely result”, “forecast”, “outlook”, “projects”, “may” or very similar expressions. By their nature, these statements require risk and uncertainty due to the fact they relate to long run events and instances and there are lots of elements that could induce true final results and developments to differ materially from people expressed or implied by these statements.

These factors involve but are not minimal to: Philips’ capability to obtain leadership in overall health informatics in reaction to developments in the health technology market Philips’ capability to renovate its small business product to wellbeing know-how alternatives and companies macroeconomic and geopolitical modifications integration of acquisitions and their supply on enterprise ideas and benefit creation expectations securing and retaining Philips’ mental property legal rights, and unauthorized use of third-get together intellectual home legal rights Philips’ potential to meet anticipations with respect to ESG-linked matters failure of goods and providers to meet up with excellent or safety standards, adversely influencing affected person basic safety and purchaser operations breaches of cybersecurity Philips’ means to execute and provide on courses on small business transformation and IT process variations and continuity the efficiency of our offer chain attracting and retaining staff COVID and other pandemics issues to drive operational excellence and speed in bringing improvements to market compliance with restrictions and specifications which include high-quality, products basic safety and (cyber) safety compliance with enterprise perform regulations and polices treasury and funding hazards tax pitfalls reliability of internal controls, fiscal reporting and administration procedure. For a dialogue of variables that could induce foreseeable future benefits to vary from this sort of ahead-wanting statements, see also the Hazard administration chapter bundled in the Annual Report 2021. Reference is also built to Hazard administration in the Philips semi-once-a-year report 2022.

Philips has regarded a provision similar to the voluntary remember notification in the US/discipline security notice exterior the US for specific sleep and respiratory care products and solutions, primarily based on Philips’ greatest estimate for the anticipated field actions. Upcoming developments are subject to important uncertainties, which involve management to make estimates and assumptions about goods this kind of as quantities and the portion to be changed or repaired. Real results in long run durations may differ from these estimates and impact the firm’s success of functions, money situation and cash flows.

For the duration of the quarter, an indicator of impairment was identified for the Snooze & Respiratory Care income-producing unit (CGU) as a consequence of revisions to the expected future dollars flows of the CGU. The goodwill impairment cost regarded this quarter is because of to revisions to the fiscal forecast of our Snooze & Respiratory Care company inside of the Related Care section. The impairment cost was calculated by evaluating the carrying amount of money of the Slumber & Respiratory Care CGU with its recoverable volume, the basis of which is price in use. The forecast used to calculate the worth in use needed management to make important estimates and assumptions about foreseeable future income flows. Actual results in upcoming periods could differ from these estimates. After this impairment cost, the estimated recoverable quantity for Slumber & Respiratory Treatment is equivalent to its carrying benefit and therefore any adverse modify in key assumptions would separately result in a substance impairment loss to be acknowledged.

3rd-get together sector share info

Statements relating to market share, contained in this document, such as individuals pertaining to Philips’ competitive situation, are based mostly on outdoors sources such as specialized study institutes, field and seller panels in mixture with administration estimates. In which facts is not however offered to Philips, market share statements may perhaps also be based mostly on estimates and projections prepared by administration and/or based on exterior resources of facts. Management’s estimates of rankings are centered on get intake or income, based on the company.

Market place Abuse Regulation

This push release contains inside information in the which means of Article 7(1) of the EU Market Abuse Regulation. This push release was dispersed at 07:00 am CET on Oct 24, 2022.

Use of non-IFRS facts

In presenting and discussing the Philips Group’s economic situation, operating effects and hard cash flows, management employs sure non-IFRS fiscal measures. These non-IFRS monetary actions need to not be seen in isolation as possibilities to the equal IFRS measure and really should be used in conjunction with the most instantly equivalent IFRS steps. Non-IFRS monetary actions do not have standardized that means under IFRS and consequently may perhaps not be equivalent to related measures offered by other issuers. A reconciliation of these non-IFRS measures to the most directly comparable IFRS steps is contained in this doc. Further information on non-IFRS actions can be located in the Annual Report 2021.

Use of fair benefit info

In presenting the Philips Group’s money situation, reasonable values are used for the measurement of a variety of things in accordance with the applicable accounting requirements. These honest values are based on current market prices, wherever out there, and are obtained from sources that are deemed to be trusted. Viewers are cautioned that these values are matter to improvements over time and are only valid at the balance sheet day. When quoted prices or observable market place details are not easily out there, fair values are estimated making use of ideal valuation versions and unobservable inputs. These honest worth estimates involve administration to make substantial assumptions with regard to future developments, which are inherently uncertain and might consequently deviate from precise developments. Crucial assumptions applied are disclosed in the Once-a-year Report 2021. In certain scenarios impartial valuations are obtained to aid management’s willpower of truthful values.

All amounts are in tens of millions of euros except or else said. Due to rounding, amounts may not incorporate up specifically to the totals furnished. All claimed data is unaudited. Fiscal reporting is in accordance with the accounting policies as said in the Annual Report 2021 besides for the adoption of new benchmarks and amendments to standards which are also predicted to be reflected in the company’s consolidated fiscal statements for the year ending December 31, 2022.

Prior-interval quantities have been reclassified to conform to the latest-interval presentation this features immaterial organizational improvements.

*) Non-IFRS economical evaluate. Refer to Reconciliation of non- IFRS info.

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