Mission Statement, Vision, & Core Values of Koninklijke Philips N.V. (PHG)

Have you ever wondered what drives a global health technology leader like Koninklijke Philips N.V. (PHG) to innovate and improve lives? With 2024 sales of EUR 18 billion and a workforce of approximately 67,800, the company's mission, vision, and core values are the guiding principles behind their success. But how do these principles translate into real-world impact, especially when they aim to improve 2.5 billion lives per year by 2030? Keep reading to explore the core of what makes this company tick.

Koninklijke Philips N.V. (PHG) An Overview of

Koninklijke Philips N.V., commonly known as Philips, has a storied history that began in 1891 in Eindhoven, Netherlands. Founded by Gerard Philips and his father Frederik, the company initially focused on manufacturing light bulbs. Over the decades, Philips has evolved into a global health technology leader, offering a diverse range of products and services designed to improve people's health and well-being. Today, Philips operates in various segments, including Diagnosis & Treatment, Connected Care, and Personal Health.

Philips' offerings span a wide array of healthcare solutions, from advanced diagnostic imaging systems like MRI and CT scanners to therapeutic devices and patient monitoring solutions. In the consumer market, Philips provides personal care products such as electric toothbrushes, shavers, and mother and child care items. As of the latest reports, Philips continues to innovate in digital health, leveraging technology to create connected solutions that enhance patient care and streamline healthcare delivery. For example, the company's solutions for remote patient monitoring and telehealth are gaining traction, reflecting the growing demand for accessible and efficient healthcare services. Recent sales figures show a strong performance in key markets, driven by demand for Philips' advanced healthcare technologies.

In 2024, Philips faced significant challenges but also demonstrated resilience and strategic progress. The company reported sales of €18.2 billion, a 3.5% comparable sales growth. While the Diagnosis & Treatment businesses showed solid growth, the Connected Care businesses faced headwinds. Despite these challenges, Philips achieved an Adjusted EBITA margin of 11.1%. The company expects a 3-5% comparable sales growth and an Adjusted EBITA margin of 13-14% for 2025. Philips is focusing on improving execution, strengthening its supply chain, and enhancing its innovation pipeline to drive sustainable and profitable growth.

Philips is recognized as one of the leading companies in the health technology industry because of its long history of innovation, its broad portfolio of products and services, and its commitment to improving people's lives. Philips invests heavily in research and development to stay at the forefront of technological advancements and to address the evolving needs of healthcare providers and consumers. The company's strategic focus on digital health and connected care solutions positions it well to capitalize on the growing trends in the healthcare industry. To delve deeper into the investment landscape surrounding Philips, consider exploring the dynamics of its investor base and the factors driving investment decisions: Exploring Koninklijke Philips N.V. (PHG) Investor Profile: Who’s Buying and Why?

Koninklijke Philips N.V. (PHG) Mission Statement of

The mission statement of Koninklijke Philips N.V. is 'to improve people’s health and well-being through meaningful innovation.' This statement reflects the company's commitment to making a positive impact on society by focusing on healthcare and well-being. The mission is supported by a vision to be a leading health technology company, making life better for billions of people around the world.

Koninklijke Philips N.V.'s mission statement is comprised of three core components:

• Improving People's Health and Well-being
• Meaningful
• Innovation

Each component is integral to understanding the overarching goals and values that drive the company.

Improving People's Health and Well-being

This component underscores the company's primary focus on contributing positively to society. It emphasizes that Koninklijke Philips N.V.'s efforts are directed towards enhancing the quality of life for individuals globally through its products, services, and solutions. For example, Koninklijke Philips N.V. develops advanced diagnostic imaging systems, such as MRI and CT scanners, which aid in the early and accurate detection of diseases. These technologies help healthcare professionals make informed decisions, leading to better patient outcomes. In 2024, Koninklijke Philips N.V. reported that its healthcare solutions impacted the lives of over 400 million people globally, demonstrating its commitment to improving health on a large scale.

Meaningful

The term 'meaningful' highlights Koninklijke Philips N.V.'s dedication to creating solutions that are not only innovative but also relevant and impactful to the real needs of people. This reflects a commitment to understanding the challenges faced by healthcare providers and patients, ensuring that innovations address these needs effectively. Koninklijke Philips N.V. focuses on patient-centric innovation, designing products that improve the patient experience and outcomes. For instance, Koninklijke Philips N.V.'s remote patient monitoring solutions enable healthcare providers to monitor patients' conditions from a distance, reducing the need for frequent hospital visits and improving patient comfort. In 2024, patient satisfaction scores for Koninklijke Philips N.V.'s remote monitoring programs increased by 25%, highlighting the meaningful impact of these solutions.

Innovation

Innovation is the driving force behind Koninklijke Philips N.V.'s mission, emphasizing the company's commitment to continuously developing new and improved technologies. This involves investing in research and development to create solutions that address unmet needs and improve existing healthcare practices. Koninklijke Philips N.V. invests significantly in R&D to drive technological advancements in healthcare. In 2024, Koninklijke Philips N.V. invested over €1.8 billion in R&D, focusing on areas such as AI, machine learning, and advanced imaging technologies. This investment has led to the development of innovative products like the Spectral CT 7500, which improves diagnostic accuracy and reduces radiation exposure. The company secured over 1,500 patents in 2024, showcasing its dedication to innovation.

To gain more insights into Koninklijke Philips N.V.'s financial performance and strategic positioning, explore: Breaking Down Koninklijke Philips N.V. (PHG) Financial Health: Key Insights for Investors

Koninklijke Philips N.V. (PHG) Vision Statement of

Koninklijke Philips N.V. (PHG), a global leader in health technology, crafts its strategic direction through a clearly defined mission, vision, and core values. These elements guide the company's operations, innovations, and interactions with stakeholders. As of April 2025, understanding these guiding principles provides valuable insight into Philips' long-term objectives and how it aims to create value in the healthcare industry.

For a deeper dive into the investor perspective, check out Exploring Koninklijke Philips N.V. (PHG) Investor Profile: Who’s Buying and Why?

Here's an exploration of Philips' mission, vision, and core values:

Mission Statement

Philips' mission statement is 'to improve people’s health and well-being through meaningful innovation.' This statement focuses on several key aspects:

• Improving People’s Health: Philips aims to make a tangible, positive impact on the health of individuals.
• Enhancing Well-being: Beyond just treating illnesses, Philips is dedicated to improving the overall quality of life for people.
• Meaningful Innovation: Philips emphasizes that its innovations are not just for the sake of novelty, but must provide real value and benefits to users.

This mission is reflected in their 2024 performance, with significant investments in R&D, totaling €1.7 billion, to develop healthcare solutions that address critical needs in areas like cardiac care, oncology, and sleep management.

Vision Statement

Philips' vision is 'to make the world healthier and more sustainable through innovation.' This vision broadens the scope of the mission statement by adding an environmental dimension. Key components include:

• Healthier World: Philips envisions a world where its technologies and solutions contribute to better health outcomes globally.
• Sustainable World: Philips is committed to environmentally responsible practices, aiming to minimize its ecological footprint.
• Through Innovation: Innovation remains central to achieving these goals, driving the development of new products and services that support both health and sustainability.

In line with this vision, Philips has set targets for sustainable operations. By 2025, they aim to generate 75% of sales from green products and services, and they are working towards becoming carbon neutral in their operations. In 2024, Philips already achieved 69% of sales from green products and services.

Core Values

Philips' core values define the principles that guide the company's culture and behavior. While these values may evolve, they generally include:

• Customer First: Philips prioritizes understanding and meeting the needs of its customers.
• Quality: Philips is committed to delivering high-quality products and services.
• Integrity: Philips conducts business ethically and transparently.
• Innovation: Philips fosters a culture of creativity and continuous improvement.
• Teamwork: Philips believes in the power of collaboration and working together to achieve common goals.

These values are embedded in Philips' employee programs and performance evaluations. For instance, the 'Philips Code of Conduct' outlines the expected ethical standards for all employees, and the company invests in training programs to promote a culture of innovation and customer focus. In 2024, Philips conducted over 100,000 hours of employee training on topics related to ethics, compliance, and innovation.

Philips' commitment to these values is also evident in its corporate governance practices. The company has a robust risk management framework and a dedicated sustainability committee that oversees its environmental and social initiatives. In 2024, Philips was recognized by several organizations for its sustainability efforts, including being named one of the world's most sustainable companies by Corporate Knights.

Koninklijke Philips N.V. (PHG) Core Values of

At Company, a commitment to its core values underpins its mission and vision, shaping its culture and guiding its interactions with customers, employees, and stakeholders. These values reflect Company's dedication to innovation, sustainability, and ethical conduct.

Focus on Innovation

Company places a significant emphasis on innovation, viewing it as essential for addressing global healthcare challenges and enhancing people's lives. This commitment is evident in Company's substantial investment in research and development, totaling EUR 1.7 billion in 2024. This investment fuels the creation of cutting-edge technologies and solutions designed to improve patient outcomes and streamline healthcare delivery. For example, Company's development of advanced imaging systems and AI-powered diagnostic tools demonstrates its dedication to pushing the boundaries of medical technology. This focus on innovation not only strengthens Company's competitive advantage but also contributes to the advancement of healthcare worldwide.

Examples of Company's commitment to innovation include:

• Investing EUR 1.7 billion in Research and development in 2024.
• Developing advanced imaging systems for more accurate diagnoses.
• Creating AI-powered diagnostic tools to improve healthcare efficiency.

Commitment to Sustainability

Sustainability is a core value for Company, driving its efforts to minimize its environmental impact and promote social responsibility. Company integrates sustainable practices throughout its operations, from product design to supply chain management. In 2024, Company continued its efforts to reduce its carbon footprint, aiming for carbon neutrality in its operations. The company also focuses on creating energy-efficient products and promoting circular economy principles, such as recycling and reusing materials. Furthermore, Company actively engages in initiatives that support communities and promote health equity. This commitment to sustainability not only benefits the environment and society but also enhances Company's long-term business resilience and reputation. In 2024, Company sourced 82% of its electricity from renewable sources.

Examples of Company's sustainability initiatives include:

• Striving for carbon neutrality in its operations.
• Designing energy-efficient products.
• Promoting circular economy principles.

Upholding Ethical Conduct

Company maintains a strong commitment to ethical conduct, ensuring integrity and transparency in all its business dealings. This commitment is reflected in Company's comprehensive code of conduct, which guides employees in making ethical decisions and adhering to the highest standards of professionalism. Company also has robust compliance programs in place to prevent fraud, corruption, and other unethical practices. In 2024, Company reinforced its ethical standards through ongoing training and communication, emphasizing the importance of integrity in building trust with stakeholders. This dedication to ethical conduct not only safeguards Company's reputation but also fosters a culture of accountability and responsibility.

Examples of Company's ethical conduct initiatives include:

• Maintaining a comprehensive code of conduct.
• Implementing robust compliance programs.
• Providing ongoing ethics training for employees.

To learn more about Company's financial health, check out: Breaking Down Koninklijke Philips N.V. (PHG) Financial Health: Key Insights for Investors