Annual Results 2004

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Annual Results 2004

• January 27, 2005

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Acquisition of Stentor Inc.Mr. Jouko
KarvinenPresident and CEOPhilips Medical Systems
3

• 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
• gt200 installations in gt100 healthcare
  institutions in North America

(Sources Frost Sullivan and KLAS Customer
Satisfaction Studies 2003, 2004 and mid-2005)
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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
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Focus on the Care Cycle
Information Decision support
Operating room Monitoring Imaging
IntensiveCare unit Monitoring
Treatment
Diagnostics
Step downfacility Monitoring
Diagnostics Imaging
Follow Up
Home Monitoring
Pre-Hospital/ Ambulance Monitoring
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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

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Annual Results 2004

• January 27, 2005

8
Acquisition of Stentor Inc.Mr. Stan
SmitsSenior Vice PresidentPhilips Medical
Systems
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Philips Radiology IT Solutions
EasyRISXtenity RIS (USA) Scheduling,worklist
management
Workflow management, image review and
reporting
ViewForum Advanced Clinical
ApplicationsMulti-modality image viewing and
processing
Philips iSite Enterprise distributionWeb-enable
d cost-effective informationdistribution
Philips iSite Radiology PACS
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Benefits of 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

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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
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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
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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
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Strengthen our competitive positionBy completing
our portfolio
Stentor iSite
Clinical IT PACS
Enterprise IT
Imaging
Monitoring
GE
Siemens
Film Companies
HIT Companies
Niche Players
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iSite fits in the complete Vequion portfolio
PACSClinical ITPACS
Intgris AlluraImaging Modalities,
Monitoring
XtenityEnterprise IT Powered by Epic
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Annual Results 2004

• January 27, 2005