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January 27, 2005. Annual Results 2004. Acquisition of Stentor Inc. Mr. Jouko Karvinen President and CEO Philips Medical Systems. Founded in November 1998, based in Brisbane, CA Picture Archiving and Communications Systems (PACS) A unique technology and service model
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January 27, 2005 Annual Results 2004
Acquisition of Stentor Inc.Mr. Jouko KarvinenPresident and CEOPhilips Medical Systems
Founded in November 1998, based in Brisbane, CA • Picture Archiving and Communications Systems (PACS) • A unique technology and service model • 50 % on-going and projected growth rate • 11% unit share of new PACS installations in 2004 in North America • #1 in Customer Satisfaction 2003, 2004 and mid-2005 • >200 installations in >100 healthcare institutions in North America (Sources Frost & Sullivan and KLAS Customer Satisfaction Studies 2003, 2004 and mid-2005)
Philips Medical Systems in 2004 Imaging SystemsEUR 2.8 bln Information and Monitoring Solutions EUR 1.5 bln Customer ServicesEUR 1.6 bln Nuclear Medicine CT MR PET Ultrasound X-Ray Consultancy Clinical services Asset management Maintenance& Repair Medical IT Patient Monitoringand Cardiac Devices Document services
Focus on the Care Cycle Information & Decision support Operating room Monitoring Imaging IntensiveCare unit Monitoring Treatment Diagnostics Step downfacility Monitoring Diagnostics Imaging Follow Up Pre-Hospital/ Ambulance Monitoring Home Monitoring
Why ? • Unique – and proven - customer experience - #1 by KLAS in 2003, 2004 and mid-2005 • Unique Technology with access to full detail of clinical images anytime, anywhere – faster and at lower cost • Strong team with strong leaders who are eager to multiply the business within Philips • A shared vision of the future • Strong market, clinical and technology synergies • Strong combined market position #2 to start with
January 27, 2005 Annual Results 2004
Acquisition of Stentor Inc.Mr. Stan SmitsSenior Vice PresidentPhilips Medical Systems
A comprehensive radiology IT portfolio Philips Radiology IT Solutions EasyRISXtenity RIS (USA) Scheduling,worklist management Workflow management, image review and reporting Philips iSite Enterprise distributionWeb-enabled cost-effective informationdistribution ViewForum &Advanced Clinical ApplicationsMulti-modality image viewing and processing Philips iSite Radiology PACS
Management of radiology: Cost reduction More examinations per modality Better service to referring physicians Standardization of work processes Control of workflow Automated billing Management information Radiologist: Increase productivity More accurate diagnostics Less disturbance by referring physicians Handling of MR and CT examinations Tele-consult colleagues Work from home Benefits of PACS
Philips’ and Stentors’ combined worldwide presence and installed base North America, Europe and Japan Account for 80% of the total market Over 1600 PACS systems for Radiology and/or Cardiology installed worldwide! Dots give indication of installation of one or more Radio and/or Cardio PACS system
Consulting Infrastructure IT Enterprise IT Clinical IT/PACS Imaging & Monitors $2.4 Bln $23.8 Bln $35.7 Bln Total IT in Healthcare $62 Bln (USA 50%) in 2004 Healthcare IT Market IT in Healthcare = Infrastructure IT + Healthcare IT Healthcare IT= Enterprise IT + Clinical IT/PACS Healthcare IT is: • very fragmented (1200+ companies) • a $ 26 Bln market (USA 70%) • with an average growth 11%/year Consulting: Business Processing Re-engineering (BPR), Institutional Transformation: Alliance Programs Infrastructure IT: IT Hardware, Op. Systems, Networks, Office Desktop. Outsourced infrastructure: Reseller agreements Enterprise IT: Clinical Data Repository, CPOE, EMR and Departmental IT: RIS, CVIS, etc.: Philips Xtenity powered by Epic Clinical IT/PACS: PACS, Workstations, Clinical Applications, Decision Support, Monitoring related IT products: Many Philips Medical Systems products Source: CapGemini U.S., DeLoitte, Gartner
Global Radiology and Cardiology PACS market Global PACS market 2004E: $ 1.8 Bln Growth 9% per year US Market share Radiology PACS 2004 in units Source: Frost & Sullivan 2004
Philips BEST in CLASS in all major categories Strengthen our competitive positionBy completing our portfolio Stentor iSite Clinical IT PACS Enterprise IT Imaging Monitoring GE Siemens Film Companies HIT Companies Niche Players
Guaranteeing a consistent UI and full interoperability iSite fits in the complete Vequion portfolio PACSClinical ITPACS Intgris AlluraImaging Modalities, Monitoring XtenityEnterprise IT Powered by Epic
January 27, 2005 Annual Results 2004