Core Viewpoint - Philips reported a sales revenue of €4.34 billion (approximately ¥36 billion) for Q2 2025, a year-on-year decline of 2.8%, but adjusted EBITA reached €540 million with a profit margin of 12.4%, an increase of 130 basis points year-on-year, indicating a recovery in overall profitability and operational efficiency [1][2][25]. Group 1: Financial Performance - The company achieved a nominal sales growth of -3% and a comparable sales growth of 1% in Q2 2025 [2]. - Adjusted EBITA for Q2 2025 was €540 million, representing 12.4% of sales, compared to 11.1% in Q2 2024 [2][3]. - Free cash flow turned positive at €230 million, despite a net profit decline of 46.9% year-on-year [1]. Group 2: Business Segments - The Diagnostics and Treatment segment generated sales of €2.08 billion, down 4% year-on-year, but adjusted EBITA improved to €281 million with a profit margin of 13.5% [3][4]. - The Connected Care segment reported sales of €1.27 billion, a decline of 5%, yet adjusted EBITA rose to €132 million, with a profit margin of 10.4% [11][12]. - The Personal Health segment continued to grow, achieving sales of €862 million, a nominal increase of 3% and a comparable increase of 6% [17][18]. Group 3: Innovation and Product Development - Philips accelerated commercialization of AI-enabled imaging platforms, with the SmartSpeed Precise MRI platform receiving FDA approval, enhancing scanning speed by three times and image clarity by 80% [4][6]. - The company is focusing on AI-driven virtual monitoring capabilities, with key products like Patient Information Center iX and IntelliVue series gaining traction in North America and Europe [11][14]. - New product lines in high-end diagnostics, intraoperative, rapid testing, and remote care are being developed, forming a comprehensive AI-driven "smart device loop" [22][24]. Group 4: Market Strategy - Philips is establishing a global market strategy characterized by breakthroughs in Southeast Asia, a waiting phase in China, and stability in North America [19][21]. - A significant milestone was achieved with a multi-year agreement with the Indonesian Ministry of Health to deploy Azurion imaging systems nationwide, impacting over 280 million people [20]. - The Chinese market is currently adjusting, with a slight decline in sales, but government initiatives may stimulate demand recovery in the second half of the year [21].