Winning in Japan. Danny Risberg, General Manager Market Japan, Philips Healthcare
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1 Winning in Japan Danny Risberg, General Manager Market Japan, Philips Healthcare
2 Key takeaways Hospital to Home solution is a key driver for growth in Japan Hyper-aging society Expensive hospital system Government investment in home care We offer unique solutions tailored to Japanese needs Deep market insight and teaming with local health care professionals Our growth is driven by our solutions across the continuum of care Business performance, share improvements and satisfied customers 2
3 Philips Healthcare Guiding Statement We are dedicated to creating the future of health care and saving lives. We develop innovative solutions across the continuum of care in partnership with clinicians and our customers to improve patient outcomes, provide better value and expand access to care. 3
4 Market trends Our opportunities in Japan Hyper-aging driving increased health care spend World s oldest population (23%) and getting older 1 1 in 4 Japanese are 65 or older Virtually 100% covered by national insurance Health care spend 9.6% GDP and increasing 2 Many hospitals, but inefficient and undifferentiated Hospitals per one million people 3 Japan 69 > USA 18 Need to transition from an acute to a chronic care system Hospital length of stay is three times longer vs. the US and the Netherlands More home care will be needed In-hospital treatment is not sustainable Government initiatives to support home care >60% of the Japanese people want home care 4 1 Cabinet office white paper (2012) 2 Boston Consulting Group (2013) 3 Canon Global Strategy Institute (2009) 4 Ministry of Health, Labour and Welfare homepage, policy on home care 4
5 Accelerating Japan Market size Sales Market share Hospital Home 3.8 pts nd Largest Equipment Market 2011 market decline due to the Tsunami Growth projected at low single-digit Growing faster than the market Hospital growth CAGR ~14% Homecare growth CAGR 15% Resourcing to win and results in market share gains over three years Market share growth driven by Imaging systems and Home Healthcare 5
6 Accelerating Japan What is Philips Healthcare doing to win? Philips Healthcare Japan teaming with local physicians caring for patients to improve lives, reduce cost and grow our business Common Philips technologies from the ICU Ward Home providing a true Continuum of Care Valued clinical expertise resourced with over 100 registered medical technicians on staff supporting our customers and their patients Leading positions in hospital and home ventilation, sleep therapy, monitoring in our Hospital to Home business Two-thirds of the health care practitioners in our latest Heartbeat study preferred Philips in the Hospital to Home arena One of the reasons that I like to work with Philips as my partner is their customer-centric way of doing business, including its 24/7 customer support center for their respiratory customers. That is the key to support the wellbeing of my DMD patients Dr. Ishikawa National Yakumo Hospital 6
7 Why we win Delivering solutions across the continuum of care Adding value to Philips technologies starting in the hospital with support, training, inservice, accessories and peace of mind that can move with the patient as they improve to get them home Portfolio expands far beyond products into solutions and services supporting our customer s efforts The Philips global brand backing our locally relevant innovations in Japan, driven by our local team, gaining trust with our loyal customer base Market believing in our values and mission 7
8 Why we win Philips delivering solutions across continuum of care A range of locally relevant solutions Philips End2End infrastructure for the Japanese market Our business and markets team up to capitalize on opportunities using a deep understanding of the needs of the Japanese market Activities focused for efficient and sustainable care while improving peoples lives with Philips innovations and localized expertise Imaging Systems teams for scientific and clinical research Sleep awareness, Pre-Intra- Post hospital diagnostics programs, patient flow management, patient therapeutics and follow-up Ventilation programs for acute and chronic illnesses proving care where needed, where appropriate and where they want it Philips direct 24/7 hospital and home coverage with service teams supporting our customers and their patients across the nation Delivering Philips experience, technologies and innovations to Japan, in Japanese, supported by Japanese, backed by a global brand 8
9 Key takeaways Hospital to Home solution is a key driver for growth in Japan Hyper-aging society Expensive hospital system Government investment in home care We offer unique solutions tailored to Japanese needs Deep market insight and teaming with local health care professionals Our growth is driven by our solutions across the continuum of care Business performance, share improvements and satisfied customers 9
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