Specialist
Former executive at Koninklijke Philips NV
Agenda
- Philips Domestic Appliances’ performance outlook by region, including key challenges and opportunities in China's brand repositioning and opportunities in North America
- Growth analysis by category, highlighting expansion opportunities, premiumisation scope and inventory management challenges
- Cost-saving opportunities amid inflationary pressures
- M&A opportunities and consolidation expectations
Questions
1.
What is your 2022 growth outlook for Philips Domestic Appliances, and how might this differ from the past 24 months?
2.
How much of Philips Domestic Appliances’ volume growth over the past two years or so was induced by coronavirus-related spending?
3.
How would you expect volume to evolve as we potentially exit the pandemic?
4.
Could you break down your growth outlook by geography? What should we expect in Europe and the US vs China?
5.
You said Philips Domestic Appliances needs to build out the offering in North America. Could you outline the key steps the company needs to take and any associated challenges?
6.
What investment would be required to support the turnaround in North America you mentioned?
7.
You mentioned an expected 5-7% decline from Philips Domestic Appliances ceasing the Russian and Ukrainian operations. What opportunities are there to recoup these losses?
8.
How is Philips Domestic Appliances’ brand repositioning going in China? What are the structural reasons for underperforming, and what needs to change?
9.
What opportunities are there to premiumise the offering? How feasible would it be to change consumers’ views when they’re already anchored on a specific price point for Philips?
10.
What is your estimate for Philips’ D2C sales penetration, and how big could this get globally? You mentioned D2C distribution as a lever the company can pull to deliver growth.
11.
How would Philips’ increase in D2C impact overall margins?
12.
How do you assess Philips’ performance against other large players such as Midea, De’Longhi, Seb and also private-label offerings globally?
13.
What portfolio optimisation or rationalisation would you expect across core stable products and flagship products? You mentioned it as one of the levers.
14.
What increased pricing can Philips push through to consumers in the flagship products?
15.
What does Philips’ inventory cycle typically look like, and how would you expect current supply chain headwinds to have impacted it?
16.
What is Philips’ in-housing opportunity further than the 25% you mentioned?
17.
Where could Philips’ 25% in-housing rate reach in 3-5 years?
18.
What do you think are the greatest cost-saving and margin-expansion opportunities for Philips currently?
19.
Do you expect any consolidation in the industry? Would you expect Philips Domestic Appliances to participate, or would any of its assets be interesting to divest?
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