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

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Abhijit Bhattacharya: Yes. On the liability insurance, we have mentioned earlier, we have a coverage, which would be between the €500 million and €600 million. Now, of course, if you don’t know the liability, it becomes more difficult to settle with the insurance companies. So that’s a dialogue that will still continue. And once we have, let’s say, clarity on that, we will again come back to you and make it clear.

Roy Jakobs: And maybe on the third question, let me give you a concrete example how this will work. So, if you think about one of the very exciting areas that we are operating in is the Image-Guided Therapy business segment. This is an area in the hospital where actually a lot of development is still taking place. Minimally invasive surgery is a surgery of the future. Actually more therapy areas being developed where this can be applied. So actually, to develop that, you do a lot together with customers. So, if you look to our IGT business and the platform that we have developed, the Azurion platform, which is the leading system, more than 40% market share, actually, that’s a very close collaboration with our customers. So, we have developed that out of the business, and we continue to develop that.

Now we put the best in that solution from hardware, from software and from services. So, actually, we pull from across Philips the best of technologies to actually then make it the most useful, impactful application for the practitioners to use every day, but then also for the hospital to do in an efficient way. That’s in IGT. But the same we can say for hospital patient monitoring, another very important business where we have a lot of opportunity where we develop the next generation of platform (ph) 7500, together with the surveillance solution, that actually has developed a lot in collaboration with our customers. So, yes, we will still do some breakthrough out of the corporate research, but more we will do in the businesses to gear up that it’s really specific for the segment that we play in and therefore yield more impact and more return.

Sezgi Oezener: That’s very helpful. Thank you very much.

Operator: Thank you. We will now go to our next question. And your next question comes from the line of Ed Ridley-Day from Redburn. Please go ahead. Your line is open.

Ed Ridley-Day: Good morning. Thank you. First question, a follow-up on the order book. If you could give us the year-end book-to-bill, that would be helpful. And how are you thinking about order book progression this year that was also coming off the 8%, obviously, decline year-on-year in the fourth quarter? And so, the related second question there is, can you actually define how much of that year-on-year decline was due to the one-time reorganization of the order book? I think that would help everyone if you could give that clarity. And I also had a follow-up on the 10% ’23 to ’25 Sleep & Respiratory growth assumption. Not so much for this year, but what does that really assume for ’24, ’25? Are you assume — what — are we in a position to make an assumption there given that we do not know the full outcome of the consent decree? That would be helpful if you could speak to that. Thank you.

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