"We are actively engaging with the medical technology industry, governments, the World Health Organization and other health authorities to safeguard the production expansion of materials, components and final products, as well as their shipment between countries. We are calling on all these parties to help us in our endeavor to save lives by accelerating deliveries. We believe in fair allocation of scarce medical equipment to those that need it the most, while we are ramping up to supply other regions in the coming months," continued Frans van Houten.


Philips' efforts to increase the production include:
Hiring additional manufacturing employees and shifting current employees to support increased demand immediately;
Adding manufacturing lines and increasing the number of shifts to 24/7 shifts;
Working closely with Philips' suppliers to secure materials supply to feed the increased production at our manufacturing sites;
Leveraging Philips' innovation capabilities to re-purpose adjacent product ranges to address the increased demand;
Engaging with third party contract manufacturers.


COVID-19 impact on Philips' performance

Despite the COVID-19 pandemic, Philips has been able to continue its global business operations and serve its customers. However, the impact of the outbreak on public life and industry in the most affected regions is resulting in a decreased demand for Philips' consumer portfolio and is affecting Philips' global supply chains. While this is expected to have a negative impact on the financial performance of Philips in the first half of 2020, the company cannot quantify the magnitude and duration of such impact at this time given the continued fluidity of the situation. Philips continues to monitor and assess its business operations daily, and will provide an update as appropriate.


About Royal Philips
Royal Philips (NYSE: PHG, AEX: PHIA) is a leading health technology company focused on improving people's health and enabling better outcomes across the health continuum from healthy living and prevention, to diagnosis, treatment and home care. Philips leverages advanced technology and deep clinical and consumer insights to deliver integrated solutions. Headquartered in the Netherlands, the company is a leader in diagnostic imaging, image-guided therapy, patient monitoring and health informatics, as well as in consumer health and home care. Philips' health technology portfolio generated 2019 sales of EUR 19.5 billion and employs approximately 80,000 employees with sales and services in more than 100 countries.

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