Financial PerformancePhilips should continue to expand the margin and deliver towards mid-term targets, driven by a positive mix contribution, improvement on gross margin, ongoing cost cutting program, and potential savings on procurement.
Litigation And ValuationA milder and earlier-than-feared $1.1bn settlement marked the end of litigation uncertainty, allowing a major re-rating.
Market PositionPhilips is well positioned in China and management doesn’t think they are missing out on something, indicating no market share loss.