Global scale of operations and leading market shares in the main business segments. Strong brand equity and product innovation capabilities. Broad product range, diversity of business, and customer-end markets. Volatile profitability owing to competitive actions needed to stabilize the profitability of the lighting business, as well as cost optimization across other divisions. Competitive challenges in the healthcare equipment segment, despite stable underlying demands trends and Philips' well-established positions in a number of product segments. Forecast stable free operating cash flow (FOCF) of about €1 billion annually. Gradually improving credit metrics with projected debt to EBITDA of about 2.0x and funds from operations (FFO) to debt of about 40%. Diversified debt structure and balanced debt maturity profile. S&P Global Ratings' stable
