0001193125-14-445277.txt : 20141217 0001193125-14-445277.hdr.sgml : 20141217 20141217151815 ACCESSION NUMBER: 0001193125-14-445277 CONFORMED SUBMISSION TYPE: SC TO-C PUBLIC DOCUMENT COUNT: 66 FILED AS OF DATE: 20141217 DATE AS OF CHANGE: 20141217 GROUP MEMBERS: CLEARWATER MERGER SUB, INC. GROUP MEMBERS: PHILIPS HOLDING USA INC. SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: Volcano Corp CENTRAL INDEX KEY: 0001354217 STANDARD INDUSTRIAL CLASSIFICATION: ELECTROMEDICAL & ELECTROTHERAPEUTIC APPARATUS [3845] IRS NUMBER: 330928885 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC TO-C SEC ACT: 1934 Act SEC FILE NUMBER: 005-82497 FILM NUMBER: 141292353 BUSINESS ADDRESS: STREET 1: 3721 VALLEY CENTRE DRIVE STREET 2: SUITE 500 CITY: SAN DIEGO STATE: CA ZIP: 92130 BUSINESS PHONE: 800-228-4728 MAIL ADDRESS: STREET 1: 3721 VALLEY CENTRE DRIVE STREET 2: SUITE 500 CITY: SAN DIEGO STATE: CA ZIP: 92130 FORMER COMPANY: FORMER CONFORMED NAME: Volcano CORP DATE OF NAME CHANGE: 20060223 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: KONINKLIJKE PHILIPS NV CENTRAL INDEX KEY: 0000313216 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRONIC & OTHER ELECTRICAL EQUIPMENT (NO COMPUTER EQUIP) [3600] IRS NUMBER: 000000000 STATE OF INCORPORATION: P7 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC TO-C BUSINESS ADDRESS: STREET 1: BREITNER CENTER STREET 2: AMSTELPLEIN 2 CITY: AMSTERDAM STATE: P7 ZIP: 1096 BC BUSINESS PHONE: 31 20 59 77777 MAIL ADDRESS: STREET 1: BREITNER CENTER STREET 2: AMSTELPLEIN 2 CITY: AMSTERDAM STATE: P7 ZIP: 1096 BC FORMER COMPANY: FORMER CONFORMED NAME: KONINKLIJKE PHILIPS ELECTRONICS NV DATE OF NAME CHANGE: 19981217 FORMER COMPANY: FORMER CONFORMED NAME: PHILIPS ELECTRONICS N V DATE OF NAME CHANGE: 19930727 FORMER COMPANY: FORMER CONFORMED NAME: PHILIPS NV DATE OF NAME CHANGE: 19910903 SC TO-C 1 d839161dsctoc.htm SC TO-C SC TO-C

 

 

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

SCHEDULE TO

Tender Offer Statement under Section 14(d)(1) or 13(e)(1)

of the Securities Exchange Act of 1934

 

 

VOLCANO CORPORATION

(Name of Subject Company (Issuer))

 

 

CLEARWATER MERGER SUB, INC.

a wholly owned subsidiary of

PHILIPS HOLDING USA INC.

a wholly owned subsidiary of

KONINKLIJKE PHILIPS N.V.

(Names of Filing Persons (Offerors))

Common Stock, par value $0.001 per share and associated rights to purchase capital stock

(Title of Class of Securities)

928645100

(CUSIP Number of Class of Securities)

Joseph E. Innamorati

Clearwater Merger Sub, Inc.

3000 Minuteman Road

Andover, MA 01810

(Name, address and telephone number of person authorized to receive notices and communications on behalf of the filing person)

 

 

Copies to:

Matthew G. Hurd

Rita-Anne O’Neill

Sullivan & Cromwell LLP

1888 Century Park East, Suite 2100

Los Angeles, CA 90067

 

 

CALCULATION OF FILING FEE

 

Transaction Valuation*   Amount of Filing Fee**
N/A   N/A
 
* Pursuant to General Instruction D to Schedule TO, a filing fee is not required in connection with this filing as it relates solely to preliminary communications made before the commencement of a tender offer.

 

¨ Check the box if any part of the fee is offset as provided by Rule 0-11(a)(2) and identify the filing with which the offsetting fee was previously paid. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing.

 

Amount Previously Paid:   Not applicable   Filing Party:   Not applicable
Form of Registration No.   Not applicable   Date Filed:   Not applicable

 

x Check the box if the filing relates solely to preliminary communications made before the commencement of a tender offer.

Check the appropriate boxes below to designate any transactions to which the statement relates:

 

x third-party tender offer subject to Rule 14d-1.
¨ issuer tender offer subject to Rule 13e-4.
¨ going-private transaction subject to Rule 13e-3.
¨ amendment to Schedule 13D under Rule 13d-2.

Check the following box if the filing is a final amendment reporting the results of the tender offer:  ¨

 

 

 

This filing relates solely to preliminary communications made before the commencement of a tender offer for the outstanding shares of Common Stock, par value $0.001 per share, including any associated rights to purchase capital stock, of Volcano Corporation (“Volcano”) by Clearwater Merger Sub, Inc. (“Purchaser”), a wholly owned subsidiary of Philips USA Holding Inc. (“Parent”), a wholly owned subsidiary of Koninklijke Philips N.V.


Additional Information

The tender offer described in herein (the “Offer”) has not yet commenced, and this communication is neither an offer to purchase nor a solicitation of an offer to sell any shares of the common stock of Volcano or any other securities. On the commencement date of the Offer, a tender offer statement on Schedule TO, including an offer to purchase, a letter of transmittal and related documents, will be filed with the United States Securities and Exchange Commission (the “SEC”) by Philips and a Solicitation/Recommendation Statement on Schedule 14D-9 will be filed with the SEC by Volcano. The offer to purchase shares of Volcano common stock will only be made pursuant to the offer to purchase, the letter of transmittal and related documents filed as a part of the Schedule TO. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ BOTH THE TENDER OFFER STATEMENT AND THE SOLICITATION/RECOMMENDATION STATEMENT REGARDING THE OFFER, AS THEY MAY BE AMENDED FROM TIME TO TIME, WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. The tender offer statement will be filed with the SEC by Purchaser, and the solicitation/recommendation statement will be filed with the SEC by Volcano. Investors and security holders may obtain a free copy of these statements (when available) and other documents filed with the SEC at the website maintained by the SEC at www.sec.gov or by directing such requests to the Information Agent for the Offer, which will be named in the tender offer statement.

Item 12. Exhibits

 

99.1    Presentation to employees of Volcano Corporation on December 17, 2014.
99.2    Transcript of video presentation by Frans van Houten, President and CEO of Koninklijke Philips N.V., posted on Philips’ external website on December 17, 2014.
99.3    Transcript of video presentation by Frans van Houten, President and CEO of Koninklijke Philips N.V., posted on Philips’ internal website on December 17, 2014.
99.4    Email sent to Philips’ employees on December 17, 2014.
99.5    Email sent to employees of Philips’ Image Guided Therapy Division on December 17, 2014.
99.6    Announcement posted on Philips’ internal website on December 17, 2014.
99.7    Letter to Philips Customers, dated December 17, 2014.
99.8    Letter to Philips Suppliers, dated December 17, 2014.
99.9    Presentation to employees of Philips’ Image Guided Therapy Division on December 17, 2014.

 

2

EX-99.1 2 d839161dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

LOGO

 

Philips Introduction

Bert van Meurs

December 17, 2014


LOGO

 

Additional Information

The tender offer described in this communication (the “Offer”)  has not yet commenced, and this communication is neither an offer to purchase nor a solicitation of an offer to sell any shares of the common stock of Volcano or any other securities. On the commencement date of the Offer, a tender offer statement on Schedule TO, including an offer to purchase, a letter of transmittal and related documents, will be filed with the SEC by Philips and a Solicitation/Recommendation Statement on Schedule 14D-9 will be filed  with the SEC by Volcano. The offer to purchase shares of Volcano common stock will only be made pursuant to the offer to purchase, the letter of transmittal and related documents filed as a part of the Schedule TO. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ BOTH THE TENDER OFFER STATEMENT AND THE SOLICITATION/RECOMMENDATION STATEMENT REGARDING THE OFFER, AS THEY MAY BE AMENDED FROM TIME TO TIME, WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT

INFORMATION. The tender offer statement will be filed with the SEC by Clearwater Merger Sub, Inc., a  wholly owned subsidiary of Philips Holding USA Inc., which is a wholly owned subsidiary of Royal Philips, and the solicitation/recommendation statement  will be filed with the SEC by Volcano. Investors and security holders may obtain a free copy of these statements (when available) and other documents filed with the SEC at the website maintained by the SEC at www.sec.gov or by directing such requests to the Information Agent for the Offer, which will be named in the tender offer statement.

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LOGO 4

 

Forward-Looking Statements

This release may contain certain forward?looking statements with respect to the financial condition, results of operations and business of Philips and certain of the plans and objectives of Philips with respect to these items, including without limitation completion of the tender offer and merger and any expected benefits of the merger, and certain forward?looking statements regarding Volcano, including without limitation with respect to its business, the proposed tender offer and merger, the expected timetable for completing the transaction, and the strategic and other potential benefits of the transaction. Completion of the tender offer and merger are subject to conditions, including satisfaction of a minimum tender condition and the need for regulatory approvals, and there can be no assurance that those conditions can be satisfied or that the transactions described in this release (the “Transactions”) will be completed or will be completed when expected. Often, but not always, forward-looking statements can be identified by the use of words such as “plans,” “expects,” “expected,” “scheduled,” “estimates,” “intends,” “anticipates,” “projects,”  “potential,” “continues” or “believes,” or variations of such words and phrases or state that certain actions, events, conditions, circumstances or results “may,” “could,” “should,” “would,” “might” or “will” be taken, occur or be achieved.  By their nature, forward?looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these forward?looking statements. These factors include, but are not limited to, (i) the risk that not all conditions of the Offer or the merger will be satisfied or waived; (ii) uncertainties regarding the two companies’ ability to successfully market both new and existing products; (iii) uncertainties relating to the anticipated timing of filings and approvals relating to the Transactions; (iv) uncertainties as to the timing of the tender offer and merger; (v) uncertainties as to how many of Volcano’s stockholders will tender their stock in the tender offer; (vi) the possibility that competing offers will be made; (vii) the failure to complete the tender offer or the merger in the timeframe expected by the parties or at all; (viii) the outcome of legal proceedings that may be instituted against Volcano and/or others relating to the Transactions; (ix) Volcano’s ability  to maintain relationships with employees, customers, or suppliers; (x) domestic and global economic and business conditions; (xi) developments within the euro zone; (xii) the successful implementation of Philips’ strategy and the ability to realize the benefits of this strategy; (xiii) legal claims; (xiv) changes in exchange and interest rates; (xv) changes in tax rates, raw materials and employee costs; (xvi) the ability to successfully exit certain businesses or restructure the operations; (xvii) the rate of technological changes; (xviii) political, economic and other developments in countries where Philips operates; (xix) industry consolidation and competition; and (xx) other risk factors described in Volcano’s Annual Report on Form 10?K and Quarterly Reports on Form 10?Q filed with the United States Securities and Exchange Commission (“SEC”). Any forward?looking statements in this release are based upon information known to Philips on the date of this announcement. Neither Philips nor Volcano undertakes any obligation to publicly update or revise any forward?looking statement, whether as a result of new information, future events or otherwise.

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LOGO

 

Philips will create two focused companies

Royal Philips

Philips Lighting

Focused on the EUR 100+ billion HealthTech opportunity

Serving the Health Continuum

Leveraging strengths of Healthcare and Consumer Lifestyle

Focused on the EUR 60+ billion Lighting solutions opportunity

Establishing stand?alone Lighting structure

LED Components & Automotive

(Announced in June 2014)

EUR 14.8 billion sales 20131 EUR 8.4 billion sales 20132

1Excluding Lifestyle Entertainment; including IG&S revenue allocation 2Including LED Components & Automotive; including IG&S revenue allocation

4 Note - Following the completion of the divestment of the AVM&A business, prior-period financials have been adjusted (for details please refer to note 1 “Significant accounting policies” in the Q2 2014 Quarterly report and Semi?annual report)


LOGO

 

A rich 100 year history in Healthcare


LOGO

 

Presence in more than 100 countries

Philips has R&D sites and manufacturing in all continents

North America

Asia

EMEA

Latin America

1 Source: Philips Annual Report 2013.

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LOGO

 

Enabling coordinated care across the Health Continuum

Healthy Living Prevention Diagnosis Treatment Recovery Home Care

Consumers increasingly engaged in their health journey

Increased emphasis on population health

Ongoing focus on total quality and cost of care

Care shifting to lower cost settings and homes

Opportunities from intersection of consumer and clinical spaces Customers expressing need for integrated solutions

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LOGO

 

Building the leader in HealthTech

Share of HealthTech sales1

Healthy Living

Personal Care 11%

Domestic 15% Appliances

Prevention

Health & 7% Wellness

Diagnosis

Imaging Systems

Treatment

24%

Patient Care & Clinical Informatics

Recovery Home Care

152% Home 10%

Healthcare Solutions

Healthcare Informatics, Solutions & Services

Customer Services 18%

Philips well?positioned to lead

1 Sales last 12 months June 2014

8 2

Combined Patient Care & Clinical Informatics and Healthcare Informatics,  Solutions & Services (not reported separately)


LOGO

 

Philips strongly positioned with an integrated HealthTech approach

Key building blocks to capture the opportunity Strong starting position

Portfolio of connected consumer devices and propositions

Leading portfolio of medical devices and relationships

End?to?End integrated solutions

Integration of digital health data across the Health Continuum

Broad installed base of personal health and medical, monitoring and  measurement devices

Broad channel access in home and clinical environments

Strong relationships with critical eco?system participants

Deep data stores ?insights into clinical and consumer needs

Imaging, digital analytics and clinical decision support experience

Trusted Philips brand

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LOGO

 

Diagnosis and treatment

At the heart of the Health Continuum

Healthy Living Prevention Diagnosis Treatment Recovery Home Care

Imaging Diagnostics & Image?Guided Therapy

Healthcare Transformation Services

HealthSuite Digital Platform – enabling solutions

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LOGO

 

Imaging diagnostics

From single systems to integrated diagnostic solutions

Digital Imaging

Ingenia 1.5T S Digital MRI

Unique imaging and workflow benefits

IQon Spectral CT

Allows tissue characterization, retrospectively and on demand

Philips Affinity

Delivers clinical accuracy, consistently and quickly

Advanced Informatics

IntelliSpace Portal 7

Visualize integrated information for decision support

Patient management solution

Comprehensive CT lung screening program

IntelliSpace Enterprise Informatics Solutions

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LOGO

 

Advancing treatment with image guided therapy

Integrated solutions

Strong technology platforms and clinical Integration

Leadership positions in iXR1 and Ultrasound Real time image processing Device miniaturization Deep clinical expertise Expanding range of clinical applications for minimally invasive interventions

Wide range of clinical software solutions

Procedure planning, navigation and monitoring software Disease specific applications Integration of multi modality imaging techniques

Value added services

Maintenance and utilization services Education Consultancy and integration services X ray radiation dose management services

1 iXR – Interventional X Ray

2 US News & World Report

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LOGO

 

Wide range of unique therapy guidance solutions

Cardiology Oncology Neurology

HeartNavigator

Planning and navigation of TAVI

EchoNavigator

Fusing live X ray and live echo to guide structural heart disease procedures

EPNavigator

Planning and navigation of EP procedures

OncoSuite

World’s first complete interventional solution for tumor ablation and  embolization

NeuroSuite

Supports catheter guidance through narrow vessels

Allows more effective device placement

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LOGO

 

Innovating with industry leading partners

100% of the top 50 U.S. Heart Surgery and Cardiology hospitals in 2014 have chosen Philips

Top 50 cancer hospitals in the United States named by US News  in 2014

Plus:

University Hospital Eppendorf University Hospital Beaujon University Hospital Zurich Antonius Hospital Nieuwegein

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LOGO

 

Building the leader in Image guided therapy

Initiate new growth engines

expansion into in adjacencies and growth markets More effective sales channels Leading systems integrator

Develop solutions

Systems integrator

Suite of education, consultancy and integration services to accelerate standardization of care and advancing procedures on the maturity curve Support with new business models Establishment of ventures to prepare for entry in new markets

Strengthen the core

Strong technology platforms and pipeline of innovations

Expansion within interventional cardiology , neurology and into oncology Partnerships with industrial and clinical innovators Development of predictive maintenance and performance services

2014 2015

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LOGO

 

Philips and Volcano: a merger of strengths

We share a vision and passion for health care

Mission:

Improving people’s lives through meaningful innovation

Vision:

At Philips, we strive to make the world healthier and more sustainable through innovation. Our goal is  to improve the lives of 3 billion people a year by 2025. We ill be the best place to work for people who share our passion. Together, we will deliver superior value for our customers and shareholders.

Mission:

To improve the lives of patients

Vision:

Through innovation and dedication to our values, we seek to provide  the means for superior therapeutic solutions that nable patients to live long fulfilling lives.

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LOGO

 

EX-99.2 3 d839161dex992.htm EX-99.2 EX-99.2

Exhibit 99.2

Forward-looking statements

This release may contain certain forward-looking statements with respect to the financial condition, results of operations and business of Philips and certain of the plans and objectives of Philips with respect to these items, including without limitation completion of the tender offer and merger and any expected benefits of the merger, and certain forward-looking statements regarding Volcano, including without limitation with respect to its business, the proposed tender offer and merger, the expected timetable for completing the transaction, and the strategic and other potential benefits of the transaction. Completion of the tender offer and merger are subject to conditions, including satisfaction of a minimum tender condition and the need for regulatory approvals, and there can be no assurance that those conditions can be satisfied or that the transactions described in this release (the “Transactions”) will be completed or will be completed when expected. Often, but not always, forward-looking statements can be identified by the use of words such as “plans,” “expects,” “expected,” “scheduled,” “estimates,” “intends,” “anticipates,” “projects,” “potential,” “continues” or “believes,” or variations of such words and phrases or state that certain actions, events, conditions, circumstances or results “may,” “could,” “should,” “would,” “might” or “will” be taken, occur or be achieved. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements. These factors include, but are not limited to, (i) the risk that not all conditions of the Offer or the merger will be satisfied or waived; (ii) uncertainties regarding the two companies’ ability to successfully market both new and existing products; (iii) uncertainties relating to the anticipated timing of filings and approvals relating to the Transactions; (iv) uncertainties as to the timing of the tender offer and merger; (v) uncertainties as to how many of Volcano’s stockholders will tender their stock in the tender offer; (vi) the possibility that competing offers will be made; (vii) the failure to complete the tender offer or the merger in the timeframe expected by the parties or at all; (viii) the outcome of legal proceedings that may be instituted against Volcano and/or others relating to the Transactions; (ix) Volcano’s ability to maintain relationships with employees, customers, or suppliers; (x) domestic and global economic and business conditions; (xi) developments within the euro zone; (xii) the successful implementation of Philips’ strategy and the ability to realize the benefits of this strategy; (xiii) legal claims; (xiv) changes in exchange and interest rates; (xv) changes in tax rates, raw materials and employee costs; (xvi) the ability to successfully exit certain businesses or restructure the operations; (xvii) the rate of technological changes; (xviii) political, economic and other developments in countries where Philips operates; (xix) industry consolidation and competition; and (xx) other risk factors described in Volcano’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the United States Securities and Exchange Commission (“SEC”). Any forward-looking statements in this release are based upon information known to Philips on the date of this announcement. Neither Philips nor Volcano undertakes any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Additional Information

The tender offer described in this communication (the “Offer”) has not yet commenced, and this communication is neither an offer to purchase nor a solicitation of an offer to sell any shares of the common stock of Volcano or any other securities. On the commencement date of the Offer, a tender offer statement on Schedule TO, including an offer to purchase, a letter of transmittal and related documents, will be filed with the SEC by Philips and a Solicitation/Recommendation Statement on Schedule 14D-9 will be filed with the SEC by Volcano. The offer to purchase shares of Volcano common stock will only be made pursuant to the offer to purchase, the letter of transmittal and related documents filed as a part of the Schedule TO. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ BOTH THE TENDER OFFER STATEMENT AND THE SOLICITATION/RECOMMENDATION STATEMENT REGARDING THE OFFER, AS THEY MAY BE AMENDED FROM TIME TO TIME, WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. The tender offer statement will be filed with the SEC by Clearwater Merger Sub, Inc., a wholly owned subsidiary of Philips Holding USA Inc., which is a wholly owned subsidiary of Royal Philips, and the solicitation/recommendation statement will be filed with the SEC by Volcano. Investors


and security holders may obtain a free copy of these statements (when available) and other documents filed with the SEC at the website maintained by the SEC at www.sec.gov or by directing such requests to the Information Agent for the Offer, which will be named in the tender offer statement.

Transcript of Video Presentation by Frans van Houten, President and CEO of Koninklijke

Philips N.V., posted on Philips’ External Website on December 17, 2014

Philips’ agreement to acquire VOLCANO is an important and exciting next step in our HealthTech strategy and specifically for our Image Guided Therapy business.

Image-guided therapies provide major benefits for patients and health care systems, including reduced patient risk, higher patient throughput, and lower costs.

Over the last couple of years, we have followed a deliberate strategy to create a successful and leading Image Guided Therapy business through investments in R&D, partnerships and technology licenses.

We have built up a sizeable global customer base, including each of the top 50 Heart Surgery and Cardiology hospitals in the U.S. In fact, one in every three interventional X-ray imaging systems sold in the world is a Philips system.

The images of such systems provide the maps that allow the clinician to guide thin, tube-shaped instruments called catheters through the body to the area of interest and perform the treatment.

In image-guided treatments of the heart and blood vessels, there is an upward trend to use catheters that are capable of producing ultrasound images of the interior of the blood vessel or perform measurements such as the blood flow. There is increasing clinical evidence that the use of such technologies in conjunction with interventional X-ray helps improve procedure outcomes.

I am excited about our plan to acquire VOLCANO, because VOLCANO is a unique player in this space: it is a focused, pure play company in catheter-based imaging and measurements. The company is a market leader in two important technologies in this field, with the broadest product portfolio in the industry built around these two technologies. The company serves a global customer base and generates half of its sales outside of the US.

VOLCANO is highly complementary to our portfolio of live image-guidance solutions, planning and navigation tools, and integration services. We will accelerate growth through the channel synergies that will enable cross selling of Philips products into VOLCANO’s installed base and vice versa. Because their products are single-use disposables, VOLCANO has more frequent touch points with the customer than our sales force, and this will drive adoption of our complete offering.

I am particularly excited about VOLCANO’s clinical development capabilities and world-class commercialization expertise for Philips’ next generation of imaging and measurement technologies. Together, we will introduce new solutions to address unmet needs in the minimally invasive treatment of heart rhythm disorders and structural heart diseases. Both are promising segments growing at double digit rates.

We have had a long-standing successful partnership with VOLCANO, so we know them very well. This will facilitate the integration process, and we are looking forward to getting started on our combined market opportunity.

Let me summarize today’s announcement:

With this acquisition, Philips is significantly expanding its leadership position in image-guided therapies, a key part of our HealthTech portfolio and strategy.

It creates a strategically and financially compelling combination that will enhance our commercialization opportunities in new, adjacent segments while providing operating leverage through more productive sales operations.

The acquisition is in line with our goal of making strategic investments in HealthTech to accelerate growth and generate significantly more value for customers, patients, employees and shareholders.

EX-99.3 4 d839161dex993.htm EX-99.3 EX-99.3

Exhibit 99.3

Forward-looking statements

This release may contain certain forward-looking statements with respect to the financial condition, results of operations and business of Philips and certain of the plans and objectives of Philips with respect to these items, including without limitation completion of the tender offer and merger and any expected benefits of the merger, and certain forward-looking statements regarding Volcano, including without limitation with respect to its business, the proposed tender offer and merger, the expected timetable for completing the transaction, and the strategic and other potential benefits of the transaction. Completion of the tender offer and merger are subject to conditions, including satisfaction of a minimum tender condition and the need for regulatory approvals, and there can be no assurance that those conditions can be satisfied or that the transactions described in this release (the “Transactions”) will be completed or will be completed when expected. Often, but not always, forward-looking statements can be identified by the use of words such as “plans,” “expects,” “expected,” “scheduled,” “estimates,” “intends,” “anticipates,” “projects,” “potential,” “continues” or “believes,” or variations of such words and phrases or state that certain actions, events, conditions, circumstances or results “may,” “could,” “should,” “would,” “might” or “will” be taken, occur or be achieved. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements. These factors include, but are not limited to, (i) the risk that not all conditions of the Offer or the merger will be satisfied or waived; (ii) uncertainties regarding the two companies’ ability to successfully market both new and existing products; (iii) uncertainties relating to the anticipated timing of filings and approvals relating to the Transactions; (iv) uncertainties as to the timing of the tender offer and merger; (v) uncertainties as to how many of Volcano’s stockholders will tender their stock in the tender offer; (vi) the possibility that competing offers will be made; (vii) the failure to complete the tender offer or the merger in the timeframe expected by the parties or at all; (viii) the outcome of legal proceedings that may be instituted against Volcano and/or others relating to the Transactions; (ix) Volcano’s ability to maintain relationships with employees, customers, or suppliers; (x) domestic and global economic and business conditions; (xi) developments within the euro zone; (xii) the successful implementation of Philips’ strategy and the ability to realize the benefits of this strategy; (xiii) legal claims; (xiv) changes in exchange and interest rates; (xv) changes in tax rates, raw materials and employee costs; (xvi) the ability to successfully exit certain businesses or restructure the operations; (xvii) the rate of technological changes; (xviii) political, economic and other developments in countries where Philips operates; (xix) industry consolidation and competition; and (xx) other risk factors described in Volcano’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the United States Securities and Exchange Commission (“SEC”). Any forward-looking statements in this release are based upon information known to Philips on the date of this announcement. Neither Philips nor Volcano undertakes any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Additional Information

The tender offer described in this communication (the “Offer”) has not yet commenced, and this communication is neither an offer to purchase nor a solicitation of an offer to sell any shares of the common stock of Volcano or any other securities. On the commencement date of the Offer, a tender offer statement on Schedule TO, including an offer to purchase, a letter of transmittal and related documents, will be filed with the SEC by Philips and a Solicitation/Recommendation Statement on Schedule 14D-9 will be filed with the SEC by Volcano. The offer to purchase shares of Volcano common stock will only be made pursuant to the offer to purchase, the letter of transmittal and related documents filed as a part of the Schedule TO. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ BOTH THE TENDER OFFER STATEMENT AND THE SOLICITATION/RECOMMENDATION STATEMENT REGARDING THE OFFER, AS THEY MAY BE AMENDED FROM TIME TO TIME, WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. The tender offer statement will be filed with the SEC by Clearwater Merger Sub, Inc., a wholly owned subsidiary of Philips Holding USA Inc., which is a wholly owned subsidiary of Royal Philips, and the solicitation/recommendation statement will be filed with the SEC by Volcano. Investors


and security holders may obtain a free copy of these statements (when available) and other documents filed with the SEC at the website maintained by the SEC at www.sec.gov or by directing such requests to the Information Agent for the Offer, which will be named in the tender offer statement.

Transcript of Video Presentation by Frans van Houten, President and CEO of Koninklijke

Philips N.V., posted on Philips’ Internal Website on December 17, 2014.

Philips’ agreement to acquire VOLCANO is an important and exciting next step in our HealthTech strategy and specifically for our Image Guided Therapy business.

Image-guided therapies provide major benefits for patients and health care systems, including reduced patient trauma, shorter recovery times and hospital stays, and lower costs.

Over the last couple of years, we have created a successful and leading Image Guided Therapy business.

We have built up a strong product portfolio and a sizeable global customer base. In fact, one in every three interventional X-ray imaging systems sold in the world is a Philips system. And we are responsible for most of the live 3D TEE ultrasound system sales globally.

The images of these systems provide the maps that allow the clinician to guide thin, tube-shaped instruments called catheters through the body to the area of interest and perform the treatment.

In image-guided treatments of the heart and blood vessels, there is a growing use of some very advanced catheters: catheters that are capable of producing images of the interior of the blood vessel or perform measurements such as the blood flow. There is increasing clinical evidence that the use of such technologies in conjunction with interventional X-ray systems helps improve procedure outcomes.

I am excited about our plan to acquire VOLCANO, because VOLCANO is a unique player in this space: The company is has an impressive product portfolio and sales force. And very importantly, its R&D team possesses excellent clinical development capabilities. Together, we will introduce new solutions to address unmet needs in the minimally invasive treatment of heart rhythm disorders and structural heart diseases. Both are promising and fast growing segments.

We have had a long-standing successful partnership with VOLCANO, so we know them very well. We share the same passion and vision for innovation in image guided therapies. Combining both teams is a very natural step to better serve our customers.

We now look forward to complete the transaction and bring the Volcano team into Philips’ Image Guided Therapy business. I would like to invite you to familiarize yourselves with what this company is all about, get to understand its technologies and look at how this significant new step may provide opportunities to you in serving our customers.

EX-99.4 5 d839161dex994.htm EX-99.4 EX-99.4

Exhibit 99.4

Email Sent to Philips’ Employees on December 17, 2014

Subject: Major acquisition to boost our Image Guided Therapy business

Dear colleagues,

We have announced today that we have entered into an agreement to acquire Volcano, a leader in catheter–based imaging and measurements for minimally invasive diagnostics and treatment of cardiovascular disease.

Based in San Diego, Volcano is a global leader in IVUS (a technology to image diseased arteries from within) and FFR (a technology to measure the blood flow within arteries), with a broad product range which is unique in the industry.

Upon closing of the transaction, which is anticipated in the first quarter of 2015, Volcano and its 1,800 employees will become part of Philips’ Image Guided Therapy (IGT) business, which is led by Bert van Meurs.

Image-guided therapies provide significant benefits for healthcare systems and patients, including reduced patient trauma, shorter recovery times and hospital stays, and lower costs. As a result, our clinical partners and customers are asking for a tighter integration of imaging and measurement technologies to enable such therapies. This transaction allows us to provide our customers with an integrated solution to improve procedural outcomes at a decisive stage in the health continuum

The ultimate goal of this integrated approach to health care is to drive improved clinical and financial outcomes throughout the health continuum and keeping people out of the hospital, is an important part of that. Image-guided therapies play a vital role in achieving that goal.

Over the last couple of years, Philips has created a successful and leading Image Guided Therapy business. We have built up a strong product portfolio and a sizeable customer base. One in every three interventional X-ray imaging systems sold in the world is a Philips system. The images of these systems provide the maps that allow the clinician to guide thin, tube-shaped instruments called catheters through the body to the area of interest and perform the treatment.

In image-guided treatments of the heart and blood vessels, there is a growing use of some very advanced catheters that are capable of producing images of the interior of the blood vessel or perform measurements such as the blood flow. There is increasing clinical evidence that the use of such technologies in conjunction with interventional X-ray imaging helps improve procedure outcomes.

Volcano is a unique player in this space, with an impressive portfolio and sales force. The agreement to acquire Volcano is a logical and important strategic step to enter the catheter-based imaging and measurement segment as a leader.

The combination of two industry leaders will create new sources of recurring revenue streams and increase sales growth for Philips in the EUR 4 billion image-guided therapy market opportunity.

Sales growth will be accelerated through Volcano’s close customer relationships associated with its disposable products and channel synergies that will create cross-selling opportunities between both companies’ existing customer bases. Furthermore, the combination of Volcano’s proven clinical development and commercialization capabilities with Philips’ next generation of imaging and measurement technologies, will allow Philips to introduce new solutions in higher growth segments such as the minimally invasive treatment of heart rhythm disorders and structural heart diseases. These are promising segments growing at double-digit rates.

We have had a successful partnership with VOLCANO since 2007, so we know them very well. We share the same passion and vision for innovation in image guided therapies. The unique capabilities of Volcano’s employees will be vital going forward; their deep customer relationships, strong clinical skills and entrepreneurial culture will help to ensure success for the new image-guided therapy business group.


Today’s announcement is significant as it confirms the progress we are making in our transformation towards Philips HealthTech. To become the global leader in HealthTech and shape the future of the industry, we need to make investments to boost growth and drive profitability and to generate more value for our customers, employees and shareholders.

Our acquisition of Volcano is a major step in this transformation journey and I look forward to welcoming our new Volcano colleagues to the Philips team.

We are now reaching out to customers and suppliers to share this exciting news and we will keep you up to date with the acquisition process.

Please click here to view a video in which I talk further about acquiring Volcano, and here for the Press Release issued this morning.

Best regards,

Frans van Houten

Forward-looking statements

This release may contain certain forward-looking statements with respect to the financial condition, results of operations and business of Philips and certain of the plans and objectives of Philips with respect to these items, including without limitation completion of the tender offer and merger and any expected benefits of the merger, and certain forward-looking statements regarding Volcano, including without limitation with respect to its business, the proposed tender offer and merger, the expected timetable for completing the transaction, and the strategic and other potential benefits of the transaction. Completion of the tender offer and merger are subject to conditions, including satisfaction of a minimum tender condition and the need for regulatory approvals, and there can be no assurance that those conditions can be satisfied or that the transactions described in this release (the “Transactions”) will be completed or will be completed when expected. Often, but not always, forward-looking statements can be identified by the use of words such as “plans,” “expects,” “expected,” “scheduled,” “estimates,” “intends,” “anticipates,” “projects,” “potential,” “continues” or “believes,” or variations of such words and phrases or state that certain actions, events, conditions, circumstances or results “may,” “could,” “should,” “would,” “might” or “will” be taken, occur or be achieved. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements. These factors include, but are not limited to, (i) the risk that not all conditions of the Offer or the merger will be satisfied or waived; (ii) uncertainties regarding the two companies’ ability to successfully market both new and existing products; (iii) uncertainties relating to the anticipated timing of filings and approvals relating to the Transactions; (iv) uncertainties as to the timing of the tender offer and merger; (v) uncertainties as to how many of Volcano’s stockholders will tender their stock in the tender offer; (vi) the possibility that competing offers will be made; (vii) the failure to complete the tender offer or the merger in the timeframe expected by the parties or at all; (viii) the outcome of legal proceedings that may be instituted against Volcano and/or others relating to the Transactions; (ix) Volcano’s ability to maintain relationships with employees, customers, or suppliers; (x) domestic and global economic and business conditions; (xi) developments within the euro zone; (xii) the successful implementation of Philips’ strategy and the ability to realize the benefits of this strategy; (xiii) legal claims; (xiv) changes in exchange and interest rates; (xv) changes in tax rates, raw materials and employee costs; (xvi) the ability to successfully exit certain businesses or restructure the operations; (xvii) the rate of technological changes; (xviii) political, economic and other developments in countries where Philips operates; (xix) industry consolidation and competition; and (xx) other risk factors described in Volcano’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the United States Securities and Exchange Commission (“SEC”). Any forward-looking statements in this release are based upon information known to Philips on the date of this announcement. Neither Philips nor Volcano undertakes any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.


Additional Information

The tender offer described in this communication (the “Offer”) has not yet commenced, and this communication is neither an offer to purchase nor a solicitation of an offer to sell any shares of the common stock of Volcano or any other securities. On the commencement date of the Offer, a tender offer statement on Schedule TO, including an offer to purchase, a letter of transmittal and related documents, will be filed with the SEC by Philips and a Solicitation/Recommendation Statement on Schedule 14D-9 will be filed with the SEC by Volcano. The offer to purchase shares of Volcano common stock will only be made pursuant to the offer to purchase, the letter of transmittal and related documents filed as a part of the Schedule TO. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ BOTH THE TENDER OFFER STATEMENT AND THE SOLICITATION/RECOMMENDATION STATEMENT REGARDING THE OFFER, AS THEY MAY BE AMENDED FROM TIME TO TIME, WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. The tender offer statement will be filed with the SEC by Clearwater Merger Sub, Inc., a wholly owned subsidiary of Philips Holding USA Inc., which is a wholly owned subsidiary of Royal Philips, and the solicitation/recommendation statement will be filed with the SEC by Volcano. Investors and security holders may obtain a free copy of these statements (when available) and other documents filed with the SEC at the website maintained by the SEC at www.sec.gov or by directing such requests to the Information Agent for the Offer, which will be named in the tender offer statement.

EX-99.5 6 d839161dex995.htm EX-99.5 EX-99.5

Exhibit 99.5

Announcement Posted on Philips’ Internal Website on December 17, 2014

Headline: Major acquisition to boost Philips’ Image Guided Therapy business

Philips today announced that it has entered into an agreement to acquire Volcano, a global healthcare company that is listed in the US. The company is a leader in catheter–based imaging and measurements for minimally invasive diagnostics and treatment of cardiovascular disease.

Based in San Diego, Volcano produces and sells advanced catheters that are capable of imaging the interior of blood vessels and perform measurements. These technologies are increasingly being used in conjunction with Philips’ offering of live-image guidance solutions, to improve procedural outcomes

“Image-guided therapies provide significant benefits for healthcare systems and patients, including reduced patient trauma, shorter recovery times and hospital stays, and lower costs. As a result, our clinical partners and customers are asking for a tighter integration of imaging and measurement technologies to enable such therapies,” said CEO Frans van Houten. “This transaction allows us to provide our customers with an integrated solution to improve procedural outcomes at a decisive stage in the health continuum

“The interventional cardiologist has to monitor the relevant pieces of information from various imaging and measurement technologies and then combine that in his head to guide his movements,” said Carlos E. Ruiz, Professor of Cardiology in Pediatrics and Medicine, North Shore Health System and Lenox Hill Hospital. “There is therefore, a tremendous opportunity for Philips for tighter integration of the imaging and measurement technologies and to present the relevant data in one intuitive and interactive view, as that will make a world of difference for the interventional cardiologist.”

Upon closing of the transaction, which is anticipated in the first quarter of 2015, Volcano and its 1,800 employees will become part of Philips’ Image Guided Therapy (IGT) business, which is led by Bert van Meurs.

Volcano had sales of $400 million in 2013, half of which was generated in the US and half in the rest of the world (of which Japan is the largest market).

Please click here to view a video in which Frans van Houten talks further about acquiring Volcano, and here for the Press Release issued this morning.

More information about the acquisition will be published here, when available. In the meantime, any questions should be directed to your manager or local business leader.

Forward-looking statements

This release may contain certain forward-looking statements with respect to the financial condition, results of operations and business of Philips and certain of the plans and objectives of Philips with respect to these items, including without limitation completion of the tender offer and merger and any expected benefits of the merger, and certain forward-looking statements regarding Volcano, including without limitation with respect to its business, the proposed tender offer and merger, the expected timetable for completing the transaction, and the strategic and other potential benefits of the transaction. Completion of the tender offer and merger are subject to conditions, including satisfaction of a minimum tender condition and the need for regulatory approvals, and there can be no assurance that those conditions can be satisfied or that the transactions described in this release (the “Transactions”) will be completed or will be completed when expected. Often, but not always, forward-looking statements can be identified by the use of words such as “plans,” “expects,” “expected,” “scheduled,” “estimates,” “intends,” “anticipates,” “projects,” “potential,” “continues” or “believes,” or variations of such words and phrases or state that certain actions, events, conditions, circumstances or results “may,” “could,” “should,” “would,” “might” or “will” be taken, occur or be achieved. By their nature, forward-looking statements


involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements. These factors include, but are not limited to, (i) the risk that not all conditions of the Offer or the merger will be satisfied or waived; (ii) uncertainties regarding the two companies’ ability to successfully market both new and existing products; (iii) uncertainties relating to the anticipated timing of filings and approvals relating to the Transactions; (iv) uncertainties as to the timing of the tender offer and merger; (v) uncertainties as to how many of Volcano’s stockholders will tender their stock in the tender offer; (vi) the possibility that competing offers will be made; (vii) the failure to complete the tender offer or the merger in the timeframe expected by the parties or at all; (viii) the outcome of legal proceedings that may be instituted against Volcano and/or others relating to the Transactions; (ix) Volcano’s ability to maintain relationships with employees, customers, or suppliers; (x) domestic and global economic and business conditions; (xi) developments within the euro zone; (xii) the successful implementation of Philips’ strategy and the ability to realize the benefits of this strategy; (xiii) legal claims; (xiv) changes in exchange and interest rates; (xv) changes in tax rates, raw materials and employee costs; (xvi) the ability to successfully exit certain businesses or restructure the operations; (xvii) the rate of technological changes; (xviii) political, economic and other developments in countries where Philips operates; (xix) industry consolidation and competition; and (xx) other risk factors described in Volcano’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the United States Securities and Exchange Commission (“SEC”). Any forward-looking statements in this release are based upon information known to Philips on the date of this announcement. Neither Philips nor Volcano undertakes any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Additional Information

The tender offer described in this communication (the “Offer”) has not yet commenced, and this communication is neither an offer to purchase nor a solicitation of an offer to sell any shares of the common stock of Volcano or any other securities. On the commencement date of the Offer, a tender offer statement on Schedule TO, including an offer to purchase, a letter of transmittal and related documents, will be filed with the SEC by Philips and a Solicitation/Recommendation Statement on Schedule 14D-9 will be filed with the SEC by Volcano. The offer to purchase shares of Volcano common stock will only be made pursuant to the offer to purchase, the letter of transmittal and related documents filed as a part of the Schedule TO. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ BOTH THE TENDER OFFER STATEMENT AND THE SOLICITATION/RECOMMENDATION STATEMENT REGARDING THE OFFER, AS THEY MAY BE AMENDED FROM TIME TO TIME, WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. The tender offer statement will be filed with the SEC by Clearwater Merger Sub, Inc., a wholly owned subsidiary of Philips Holding USA Inc., which is a wholly owned subsidiary of Royal Philips, and the solicitation/recommendation statement will be filed with the SEC by Volcano. Investors and security holders may obtain a free copy of these statements (when available) and other documents filed with the SEC at the website maintained by the SEC at www.sec.gov or by directing such requests to the Information Agent for the Offer, which will be named in the tender offer statement.

EX-99.6 7 d839161dex996.htm EX-99.6 EX-99.6

Exhibit 99.6

Email sent to Employees of Philips’ Image Guided Therapies Division on December 17, 2014.

Dear colleagues,

Today, we announced a very important and exciting next step in our HealthTech strategy through the acquisition of Volcano. Headquartered in San Diego, Volcano is a global leader in catheter based imaging and measurement devices for cardiovascular image guided therapy. Here is a link to the press release from this morning.

Like Philips, Volcano is a pioneer and market leader in minimally invasive technologies for the diagnosis and treatment of cardiovascular disease, and is very complementary to our vision, our strategy, and our portfolio in image guided therapy. They have a very broad and unique portfolio in catheter-based intravascular imaging and measurement to support interventional procedures for PCI as well as peripheral vascular. Among others, in both Intra-vascular Ultrasound (IVUS) and Fractional Flow Reserve (FFR), they possess a broad range of technologies that is unique in the industry.

We created the BG IGT to focus on growth into new business adjacencies in image guided therapy, while continuing to innovate new interventional procedures across disciplines. This acquisition is a logical next step in the execution of our IGT strategy and will complement the iXR and NBD businesses to become an even stronger integrated solutions provider. This is a merger from strengths. By combining two leaders in the IGT space, we can leverage each other’s unique capabilities, where the sum of the parts creates an even stronger business than the two stand alone.

The vision of Volcano is very similar to ours: “Through innovation and dedication to our values we seek to provide the means for superior therapeutic solutions that enable patients to live long fulfilling lives.” Because of the nature of the consumables business model, the Volcano sales teams are in the lab on a very frequent basis, and have a very intimate and clinical customer relationship that drives strong adoption of their technologies. Integration of Volcano will allow us to leverage their unique channel and clinical capabilities, while building on our strong position in iXR, both in our existing installed base and in competitive labs. By integrating both companies rich innovation pipelines we will create new businesses and accelerate our transformation from transactional selling into a solution-selling model.

This acquisition is fantastic news—both for the new BG IGT and for Philips as we move to become the industry leader in HealthTech. You can all be very proud that Philips has chosen to continue to invest in the growth of our IGT business based on a solid foundation and compelling strategy that you have built over so many years. Now it will be up to us to make this acquisition a success through a strong integration while preserving and leveraging the unique strengths of the Volcano people and culture. I count on all your support to make this happen.

While we can already announce today, closure of the merger will still require further regulatory approval and is expected at the start of 2015. Integration activities will then immediately start and further announcement on the integration of the Volcano company into the BG IGT will then follow. Please join me in giving our Volcano colleagues a very warm welcome to Philips soon.

At 10AM today we will be holding a town hall meeting in Best (restaurant QA) combined with a webcast, for all IGT employees to further talk about this announcement. An invite will follow shortly.

Kind Regards,

Bert van Meurs

BG leader Image Guided Therapy


Forward-looking statements

This release may contain certain forward-looking statements with respect to the financial condition, results of operations and business of Philips and certain of the plans and objectives of Philips with respect to these items, including without limitation completion of the tender offer and merger and any expected benefits of the merger, and certain forward-looking statements regarding Volcano, including without limitation with respect to its business, the proposed tender offer and merger, the expected timetable for completing the transaction, and the strategic and other potential benefits of the transaction. Completion of the tender offer and merger are subject to conditions, including satisfaction of a minimum tender condition and the need for regulatory approvals, and there can be no assurance that those conditions can be satisfied or that the transactions described in this release (the “Transactions”) will be completed or will be completed when expected. Often, but not always, forward-looking statements can be identified by the use of words such as “plans,” “expects,” “expected,” “scheduled,” “estimates,” “intends,” “anticipates,” “projects,” “potential,” “continues” or “believes,” or variations of such words and phrases or state that certain actions, events, conditions, circumstances or results “may,” “could,” “should,” “would,” “might” or “will” be taken, occur or be achieved. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements. These factors include, but are not limited to, (i) the risk that not all conditions of the Offer or the merger will be satisfied or waived; (ii) uncertainties regarding the two companies’ ability to successfully market both new and existing products; (iii) uncertainties relating to the anticipated timing of filings and approvals relating to the Transactions; (iv) uncertainties as to the timing of the tender offer and merger; (v) uncertainties as to how many of Volcano’s stockholders will tender their stock in the tender offer; (vi) the possibility that competing offers will be made; (vii) the failure to complete the tender offer or the merger in the timeframe expected by the parties or at all; (viii) the outcome of legal proceedings that may be instituted against Volcano and/or others relating to the Transactions; (ix) Volcano’s ability to maintain relationships with employees, customers, or suppliers; (x) domestic and global economic and business conditions; (xi) developments within the euro zone; (xii) the successful implementation of Philips’ strategy and the ability to realize the benefits of this strategy; (xiii) legal claims; (xiv) changes in exchange and interest rates; (xv) changes in tax rates, raw materials and employee costs; (xvi) the ability to successfully exit certain businesses or restructure the operations; (xvii) the rate of technological changes; (xviii) political, economic and other developments in countries where Philips operates; (xix) industry consolidation and competition; and (xx) other risk factors described in Volcano’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the United States Securities and Exchange Commission (“SEC”). Any forward-looking statements in this release are based upon information known to Philips on the date of this announcement. Neither Philips nor Volcano undertakes any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Additional Information

The tender offer described in this communication (the “Offer”) has not yet commenced, and this communication is neither an offer to purchase nor a solicitation of an offer to sell any shares of the common stock of Volcano or any other securities. On the commencement date of the Offer, a tender offer statement on Schedule TO, including an offer to purchase, a letter of transmittal and related documents, will be filed with the SEC by Philips and a Solicitation/Recommendation Statement on Schedule 14D-9 will be filed with the SEC by Volcano. The offer to purchase shares of Volcano common stock will only be made pursuant to the offer to purchase, the letter of transmittal and related documents filed as a part of the Schedule TO. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ BOTH THE TENDER OFFER STATEMENT AND THE SOLICITATION/RECOMMENDATION STATEMENT REGARDING THE OFFER, AS THEY MAY BE AMENDED FROM TIME TO TIME, WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. The tender offer statement will be filed with the SEC by Clearwater Merger Sub, Inc., a wholly owned subsidiary of Philips Holding USA Inc., which is a wholly owned subsidiary of Royal Philips, and the solicitation/recommendation statement will be filed with the SEC by Volcano. Investors and security holders may obtain a free copy of these statements (when available) and other documents filed with the SEC at the website maintained by the SEC at www.sec.gov or by directing such requests to the Information Agent for the Offer, which will be named in the tender offer statement.

EX-99.7 8 d839161dex997.htm EX-99.7 EX-99.7

Exhibit 99.7

Letter to Philips Customers, dated December 17, 2014

Dear CUSTOMER NAME,

As one of our most valued Philips Healthcare customers, I want to personally inform you of an exciting strategic development in our business. Today, Philips announced that it has entered into an agreement to acquire Volcano, a leader in catheter–based imaging and measurements for minimally invasive diagnostics and treatment of cardiovascular disease. This acquisition is expected to be completed in the first quarter of 2015.

Based in San Diego, Volcano produces and sells advanced catheters that are capable of imaging the interior of blood vessels and perform measurements. These technologies are increasingly being used in conjunction with our offering of live-image guidance solutions, to improve procedural outcomes

Image-guided therapies provide significant benefits for healthcare systems and patients, including reduced patient trauma, shorter recovery times and hospital stays, and lower costs. As a result, we are being asked for a tighter integration of imaging and measurement technologies to enable such therapies. This transaction allows us to provide our customers with an integrated solution to improve procedural outcomes at a decisive stage in the health continuum.

This is an important step for Philips as the new combination will generate significantly more value for our shareholders, customers, and employees. It continues our transformation journey into a solutions-focused business and significantly expands our leadership position in image-guided therapy (IGT). Volcano and Philips share the same passion and vision for innovation in Image Guided Therapy and combining our teams is a very natural step to improve the way that we serve our customers.

We hope that our expanded Image Guided Therapy business group will bring even more value, innovative technology and market leading solutions to our customers.

NAME OF HEALTHCARE SALES REPRESENTATIVE will be in touch shortly to discuss additional details about this acquisition and to clarify any remaining questions.

We are excited about the opportunities that this acquisition creates for ahead and look forward to speaking to you.

Thank you,

Signatories:

Forward-looking statements

This release may contain certain forward-looking statements with respect to the financial condition, results of operations and business of Philips and certain of the plans and objectives of Philips with respect to these items, including without limitation completion of the tender offer and merger and any expected benefits of the merger, and certain forward-looking statements regarding Volcano, including without limitation with respect to its business, the proposed tender offer and merger, the expected timetable for completing the transaction, and the strategic and other potential benefits of the transaction. Completion of the tender offer and merger are subject to conditions, including satisfaction of a minimum tender condition and the need for regulatory approvals, and there can be no assurance that those conditions can be satisfied or that the transactions described in this release (the “Transactions”) will be completed or will be completed when expected. Often, but not always, forward-looking statements can be identified by the use of words such as “plans,” “expects,” “expected,” “scheduled,” “estimates,” “intends,” “anticipates,” “projects,” “potential,” “continues” or “believes,” or variations of such words and phrases or state that certain actions, events, conditions, circumstances or results “may,” “could,”


“should,” “would,” “might” or “will” be taken, occur or be achieved. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements. These factors include, but are not limited to, (i) the risk that not all conditions of the Offer or the merger will be satisfied or waived; (ii) uncertainties regarding the two companies’ ability to successfully market both new and existing products; (iii) uncertainties relating to the anticipated timing of filings and approvals relating to the Transactions; (iv) uncertainties as to the timing of the tender offer and merger; (v) uncertainties as to how many of Volcano’s stockholders will tender their stock in the tender offer; (vi) the possibility that competing offers will be made; (vii) the failure to complete the tender offer or the merger in the timeframe expected by the parties or at all; (viii) the outcome of legal proceedings that may be instituted against Volcano and/or others relating to the Transactions; (ix) Volcano’s ability to maintain relationships with employees, customers, or suppliers; (x) domestic and global economic and business conditions; (xi) developments within the euro zone; (xii) the successful implementation of Philips’ strategy and the ability to realize the benefits of this strategy; (xiii) legal claims; (xiv) changes in exchange and interest rates; (xv) changes in tax rates, raw materials and employee costs; (xvi) the ability to successfully exit certain businesses or restructure the operations; (xvii) the rate of technological changes; (xviii) political, economic and other developments in countries where Philips operates; (xix) industry consolidation and competition; and (xx) other risk factors described in Volcano’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the United States Securities and Exchange Commission (“SEC”). Any forward-looking statements in this release are based upon information known to Philips on the date of this announcement. Neither Philips nor Volcano undertakes any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Additional Information

The tender offer described in this communication (the “Offer”) has not yet commenced, and this communication is neither an offer to purchase nor a solicitation of an offer to sell any shares of the common stock of Volcano or any other securities. On the commencement date of the Offer, a tender offer statement on Schedule TO, including an offer to purchase, a letter of transmittal and related documents, will be filed with the SEC by Philips and a Solicitation/Recommendation Statement on Schedule 14D-9 will be filed with the SEC by Volcano. The offer to purchase shares of Volcano common stock will only be made pursuant to the offer to purchase, the letter of transmittal and related documents filed as a part of the Schedule TO. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ BOTH THE TENDER OFFER STATEMENT AND THE SOLICITATION/RECOMMENDATION STATEMENT REGARDING THE OFFER, AS THEY MAY BE AMENDED FROM TIME TO TIME, WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. The tender offer statement will be filed with the SEC by Clearwater Merger Sub, Inc., a wholly owned subsidiary of Philips Holding USA Inc., which is a wholly owned subsidiary of Royal Philips, and the solicitation/recommendation statement will be filed with the SEC by Volcano. Investors and security holders may obtain a free copy of these statements (when available) and other documents filed with the SEC at the website maintained by the SEC at www.sec.gov or by directing such requests to the Information Agent for the Offer, which will be named in the tender offer statement.

EX-99.8 9 d839161dex998.htm EX-99.8 EX-99.8

Exhibit 99.8

Letter to Philips Suppliers, dated December 17, 2014

As one of our valued Philips Healthcare suppliers, I want to personally inform you of an exciting strategic development in our business. Today, Philips announced that it has entered into an agreement to acquire Volcano, a leader in catheter–based imaging and measurements for minimally invasive diagnostics and treatment of cardiovascular disease. This acquisition is expected to be completed in the first quarter of 2015.

Based in San Diego, Volcano produces and sells advanced catheters that are capable of imaging the interior of blood vessels and perform measurements. These technologies are increasingly being used in conjunction with our offering of live-image guidance solutions, to improve procedural outcomes

Image-guided therapies provide significant benefits for healthcare systems and patients, including reduced patient trauma, shorter recovery times and hospital stays, and lower costs. As a result, we are being asked for a tighter integration of imaging and measurement technologies to enable such therapies. This transaction allows us to provide our customers with an integrated solution to improve procedural outcomes at a decisive stage in the health continuum.

This is an important step for Philips as the new combination will generate significantly more value for our shareholders, customers, and employees. It continues our transformation journey into a solutions-focused business and significantly expands our leadership position in image-guided therapy (IGT). Volcano and Philips share the same passion and vision for innovation in Image Guided Therapy and combining our teams is a very natural step to improve the way that we serve our customers.

We hope that the extended image-guided therapy business group, created from the combination of both businesses, will bring even more value, innovative technology and market leading solutions to our customers.

NAME OF HEALTHCARE PROCUREMENT REPRESENTATIVE will be in touch shortly to discuss additional details about this acquisition and to clarify any remaining questions.

We are excited about the opportunities that this acquisition creates for ahead and look forward to speaking to you.

Thank you,

Signatories:

Forward-looking statements

This release may contain certain forward-looking statements with respect to the financial condition, results of operations and business of Philips and certain of the plans and objectives of Philips with respect to these items, including without limitation completion of the tender offer and merger and any expected benefits of the merger, and certain forward-looking statements regarding Volcano, including without limitation with respect to its business, the proposed tender offer and merger, the expected timetable for completing the transaction, and the strategic and other potential benefits of the transaction. Completion of the tender offer and merger are subject to conditions, including satisfaction of a minimum tender condition and the need for regulatory approvals, and there can be no assurance that those conditions can be satisfied or that the transactions described in this release (the “Transactions”) will be completed or will be completed when expected. Often, but not always, forward-looking statements can be identified by the use of words such as “plans,” “expects,” “expected,” “scheduled,” “estimates,” “intends,” “anticipates,” “projects,” “potential,” “continues” or “believes,” or variations of such words and phrases or state that certain actions, events, conditions, circumstances or results “may,” “could,” “should,” “would,” “might” or “will” be taken, occur or be achieved. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the


future and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements. These factors include, but are not limited to, (i) the risk that not all conditions of the Offer or the merger will be satisfied or waived; (ii) uncertainties regarding the two companies’ ability to successfully market both new and existing products; (iii) uncertainties relating to the anticipated timing of filings and approvals relating to the Transactions; (iv) uncertainties as to the timing of the tender offer and merger; (v) uncertainties as to how many of Volcano’s stockholders will tender their stock in the tender offer; (vi) the possibility that competing offers will be made; (vii) the failure to complete the tender offer or the merger in the timeframe expected by the parties or at all; (viii) the outcome of legal proceedings that may be instituted against Volcano and/or others relating to the Transactions; (ix) Volcano’s ability to maintain relationships with employees, customers, or suppliers; (x) domestic and global economic and business conditions; (xi) developments within the euro zone; (xii) the successful implementation of Philips’ strategy and the ability to realize the benefits of this strategy; (xiii) legal claims; (xiv) changes in exchange and interest rates; (xv) changes in tax rates, raw materials and employee costs; (xvi) the ability to successfully exit certain businesses or restructure the operations; (xvii) the rate of technological changes; (xviii) political, economic and other developments in countries where Philips operates; (xix) industry consolidation and competition; and (xx) other risk factors described in Volcano’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the United States Securities and Exchange Commission (“SEC”). Any forward-looking statements in this release are based upon information known to Philips on the date of this announcement. Neither Philips nor Volcano undertakes any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Additional Information

The tender offer described in this communication (the “Offer”) has not yet commenced, and this communication is neither an offer to purchase nor a solicitation of an offer to sell any shares of the common stock of Volcano or any other securities. On the commencement date of the Offer, a tender offer statement on Schedule TO, including an offer to purchase, a letter of transmittal and related documents, will be filed with the SEC by Philips and a Solicitation/Recommendation Statement on Schedule 14D-9 will be filed with the SEC by Volcano. The offer to purchase shares of Volcano common stock will only be made pursuant to the offer to purchase, the letter of transmittal and related documents filed as a part of the Schedule TO. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ BOTH THE TENDER OFFER STATEMENT AND THE SOLICITATION/RECOMMENDATION STATEMENT REGARDING THE OFFER, AS THEY MAY BE AMENDED FROM TIME TO TIME, WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. The tender offer statement will be filed with the SEC by Clearwater Merger Sub, Inc., a wholly owned subsidiary of Philips Holding USA Inc., which is a wholly owned subsidiary of Royal Philips, and the solicitation/recommendation statement will be filed with the SEC by Volcano. Investors and security holders may obtain a free copy of these statements (when available) and other documents filed with the SEC at the website maintained by the SEC at www.sec.gov or by directing such requests to the Information Agent for the Offer, which will be named in the tender offer statement.

EX-99.9 10 d839161dex999.htm EX-99.9 EX-99.9

Exhibit 99.9

 

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Exhibit 99.9

IGT Townhall

December 17, 2014


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Cautionary Statement Regarding Forward-Looking Statements

This release may contain certain forward-looking statements with respect to the financial condition, results of operations and business of Philips and certain of the plans and objectives of Philips with respect to these items, including without limitation completion of the tender offer and merger and any expected benefits of the merger, and certain forward-looking statements regarding Volcano, including without limitation with respect to its business, the proposed tender offer and merger, the expected timetable for completing the transaction, and the strategic and other potential benefits of the transaction. Completion of the tender offer and merger are subject to conditions, including satisfaction of a minimum tender condition and the need for regulatory approvals, and there can be no assurance that those conditions can be satisfied or that the transactions described in this release (the “Transactions”) will be completed or will be completed when expected. Often, but not always, forward-looking statements can be identified by the use of words such as “plans,” “expects,” “expected,” “scheduled,” “estimates,” “intends,” “anticipates,” “projects,” “potential,” “continues” or “believes,” or variations of such words and phrases or state that certain actions, events, conditions, circumstances or results “may,” “could,” “should,” “would,” “might” or “will” be taken, occur or be achieved. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements. These factors include, but are not limited to, (i) the risk that not all conditions of the Offer or the merger will be satisfied or waived; (ii) uncertainties regarding the two companies’ ability to successfully market both new and existing products; (iii) uncertainties relating to the anticipated timing of filings and approvals relating to the Transactions; (iv) uncertainties as to the timing of the tender offer and merger; (v) uncertainties as to how many of Volcano’s stockholders will tender their stock in the tender offer; (vi) the possibility that competing offers will be made; (vii) the failure to complete the tender offer or the merger in the timeframe expected by the parties or at all; (viii) the outcome of legal proceedings that may be instituted against Volcano and/or others relating to the Transactions; (ix)

Volcano’s ability to maintain relationships with employees, customers, or suppliers; (x) domestic and global economic and business conditions; (xi) developments within the euro zone; (xii) the successful implementation of Philips’ strategy and the ability to realize the benefits of this strategy; (xiii) legal claims; (xiv) changes in exchange and interest rates; (xv) changes in tax rates, raw materials and employee costs; (xvi) the ability to successfully exit certain businesses or restructure the operations; (xvii) the rate of technological changes; (xviii) political, economic and other developments in countries where Philips operates; (xix) industry consolidation and competition; and (xx) other risk factors described in Volcano’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the United States Securities and Exchange Commission (“SEC”). Any forward-looking statements in this release are based upon information known to Philips on the date of this announcement. Neither Philips nor Volcano undertakes any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

2

 


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Additional Information

The tender offer described in this communication (the “Offer”) has not yet commenced, and this communication is neither an offer to purchase nor a solicitation of an offer to sell any shares of the common stock of Volcano Corporation (“Volcano”) or any other securities. On the commencement date of the Offer, a tender offer statement on Schedule TO, including an offer to purchase, a letter of transmittal and related documents, will be filed with the United States Securities and Exchange

Commission (the “SEC”) by Philips and a Solicitation/Recommendation Statement on Schedule 14D-9 will be filed with the SEC by Volcano. The offer to purchase shares of Volcano common stock will only be made pursuant to the offer to purchase, the letter of transmittal and related documents filed as a part of the Schedule TO. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ BOTH THE TENDER OFFER STATEMENT AND THE SOLICITATION/ RECOMMENDATION STATEMENT REGARDING THE OFFER, AS THEY MAY BE AMENDED FROM TIME TO TIME, WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. The tender offer statement will be filed with the SEC by Clearwater Merger Sub, Inc., a wholly owned subsidiary of Philips Holding USA Inc., which is a wholly owned subsidiary of Royal Philips, and the solicitation/recommendation statement will be filed with the SEC by Volcano. Investors and security holders may obtain a free copy of these statements (when available) and other documents filed with the SEC at the website maintained by the SEC at www.sec.gov or by directing such requests to the Information Agent for the offer, which will be named in the tender offer statement.

3

 


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Intro Bert van Meurs

4

 


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Who is Volcano?

5

 


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Patients Physicians

People Products

6

 


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Volcano—highlights

Solutions for issues facing healthcare systems today

The Precision Physiology & Intravascular Imaging technology and innovation leader

Guided Therapy Physiology—rapidly growing business in large underpenetrated market

Leader

Over 7,400 installed systems

Base Business Approximately 1800 employees

Approximately 280 direct global sales reps

Strong partnerships with GE, Philips, Siemens, and Medtronic

Growth strategy Grow in peripheral vascular: Crux IVC Filters, IVUS, atherectomy

Sync-Rx co-registration hardware and software

Optical Coherence Tomography (OCT)

Financials 2013—$400M revenue

50% generated in the US, 25% in Japan and 25% in rest of world.

7

 


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Intravascular Ultrasound (IVUS)

A catheter based system that allows physicians to acquire images of diseased vessels from inside the artery.

IVUS provides detailed and accurate measurements of lumen and vessel size, plaque area and volume, and the location of key anatomical landmarks.

IVUS technology helps differentiate the four plaque types: fibrous, fibro-fatty, necrotic core and dense calcium.

40% global market share

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Fractional Flow Reserve (FFR)

Catheter-based technique used to better assess the restriction in blood flow in arteries caused by plaque build up (stenosis).

Key objective is to decide whether placing a stent is an appropriate treatment or not.

50% global market share

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Strategic fit

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Our iXR Strategy: How we win

1

 

2 3

Strengthening the Core Develop Solutions Entering New Areas

Strong pipeline of innovations

Integral value propositions per

customer segment & clinical area

with proof points to be preferred

Clinical AND Business partner

Continued focus on productivity

improvements

Modular platform investments

Develop predictive maintenance

and performance services

Strengthened quality & compliance

Consultancy (pre & post sales)

aimed at customers with efficiency

/cost challenges

Services to accelerate

standardization of care and

advancing procedures on the

maturity curve (e.g. Trans Arterial

Chemo Embolization; minimally

invasive Mitral Valves )

Support with new business models

Close collaboration BG U/S, BG

HISS, Markets and Customer Service

Penetrate adjacent clinical specialties for minimally invasive treatments that create opportunities for live image guidance e.g. spine surgery, prostate embolization

Enter medical devices (disposables) through In Body Imaging & Sensing (IBIS)

New skills (e.g. Clinical-economic, Consultancy, data analysis) & capabilities (e.g. IT infrastructure)

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Volcano is adjacent to Philips and unique in IGT segment

Out of body Intra-Body Imaging Delivery Systems &

Imaging and Sensing Therapy devices

Segment size &

CAGR% in C/V: $2B, 2-3% $1.5B, 10-12% $30-35B, 4%

O -arm X Ray

AxiEM EM

PoleStar MRI

3D microTEE, 3D ICE, cMUT, Optical Shape Sensnig

ICE, IVUS

2D ICE

3D TEE

LightLab OCT, Radi FFR, 2D ICE

IVUS, NIRS

Balloon catheters,

SyncRx imaging Microcatheters,

Integration solutions Thrombectomy catheters,

IVUS, FFR Atherectomy catheter s

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Rapidly growing IGT market provides opportunities

IGT Market €B

Equipment-based* Instrument-based (IBIS)

CAGR

4

 

3,3

4%

3

 

2,3 2,5 2,6 13%

2

 

1,1

1

 

0,8

02007 2010 2013 2020

Market dynamics

Majority of the growth is in

–In Body Imaging and Sensing (IBIS),

Catheters and Needles

–Mobile, affordable U/S for care settings outside Radiology / Cardiology

X-Ray will no longer be the dominating technology

Outlook and Opportunities

Philips technology capabilities / platforms provide strong opportunity to expand beyond present NBD-IGIT activities

IGIT Market Breakdown by Segment (€B and %)

2.5 3.1 3.7 5.9

100%

8% 10% 12% 17%

9% 11% 13%

19% 17%

23%

26%

32%

63%

56% 49%

34%

2007 2010 2013 2020

ElectroMagnetic Line of Sight Int. U/S X Ray

Includes Surgical navigation, POC U/S, TEE, Cathlab and Mobile C-arms

1

 

Present channels not suitable to create & capture value

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Creating a unique positioning

together

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Video Gerard Winkels

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Interventional procedures . . . today

Segregated equipment

XR,

Hemodynamic

monitoring

IVUS, FFR

Limited link with therapy

Stent

Interventional cardiology segment today:

22M procedures globally; 3.5% growth

Interventional cardiologist is key physician (target customer)

Established procedures in Coronary and Vascular indications; largest market segment but modest growth

Segment highly consolidated with several large cardiology companies (Medtronic, Boston Scientific, Abbott)

Minimally-invasive therapy devices rapidly evolving, and expanding to new indications

Imaging solutions are critical for optimal device guidance and outcomes (Philips, GE, Siemens)

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Interventional procedures . . . tomorrow

Integrated suites

Hardware integration (no more ‘clutter’),

streamlined workflow, common user interface,

IT integration

Leading to procedure innovation

Imaging and intelligence at the tip of a catheter

On-board imaging/monitoring with improved anatomical and functional information to optimize therapy delivery Procedure-specific application support Recurring revenue, disposable business models

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The Volcano acquisition will strongly support our strategy

1

 

2 3

Strengthening the Core Develop Solutions Entering New Areas

Strong pipeline of innovations

Integral value propositions per customer segment & clinical area with proof points to be preferred Clinical AND Business partner

Continued focus on productivity improvements

Modular platform investments

Develop predictive maintenance and performance services

Strengthened quality & compliance

Consultancy (pre & post sales) aimed at customers with efficiency /cost challenges

Services to accelerate standardization of care and advancing procedures on the maturity curve (e.g. Trans Arterial Chemo Embolization; minimally invasive Mitral Valves )

Support with new business models

Close collaboration BG U/S, BG HISS, Markets and Customer Service

Penetrate adjacent clinical specialties for minimally invasive treatments that create opportunities for live image guidance e.g. spine surgery, prostate embolization

Enter medical devices (disposables) through In Body Imaging & Sensing (IBIS)

New skills (e.g. Clinical-economic, Consultancy, data analysis) & capabilities (e.g. IT infrastructure)

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The Volcano acquisition will strongly support our strategy

1

 

2 3

Strengthening the Core Develop Solutions Entering New Areas

Strong pipeline of innovations

Integral value propositions per customer segment & clinical area with proof points to be preferred Clinical AND Business partner

Continued focus on productivity improvements

Modular platform investments

Develop predictive maintenance and performance services

Strengthened quality & compliance

Jointly create the best integrated PCI lab (X-Ray,

IVUS, FFR) in the world

Use our expertise to sell and service equipment to boost Volcano’s console business

Use the Volcano sales force customer intimacy to

boost sales of options and upgrades into our installed base

Increase our visibility of and early involvement in new lab deals

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The Volcano acquisition will strongly support our strategy

1

 

2 3

Strengthening the Core Develop Solutions Entering New Areas

Consultancy (pre & post sales) aimed at customers with efficiency /cost challenges

Services to accelerate standardization of care and advancing procedures on the maturity curve (e.g. Trans Arterial Chemo Embolization; minimally invasive Mitral Valves )

Support with new business models

Close collaboration BG U/S, BG HISS, Markets and Customer Service

Most flexible business model in the industry

(equipment, services, consumables)

Use our joint deep clinical insights to improve clinical practice, better outcomes and lower cost

20


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The Volcano acquisition will strongly support our strategy

1

 

2 3

Strengthening the Core Develop Solutions Entering New Areas

Combine Philips technology with Volcano channel, consumables know-how, and experience with clinical trials to accelerate the growth of the IBIS business

Penetrate adjacent clinical specialties for minimally invasive treatments that create opportunities for live image guidance e.g. spine surgery, prostate embolization

Enter medical devices (disposables) through In Body Imaging & Sensing (IBIS)

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More about Volcano

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Patients Physicians

People Products

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Volcano Worldwide

Manufacturing &

Systems/Hardware Volcano Europe

R&D Brussels, Belgium

Rancho Cordova, CA

Volcano East Volcano Israel

Billerica, MA

FL.ICE & Crux Tel Aviv, Israel

Bay Area, CA Global Sales & Volcano Japan

Micro Catheters

Corporate Tokyo, Japan

Atlanta, GA

Headquarters

San Diego, CA

Disposables

Manufacturing

San Jose, Costa Rica

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Philips and Volcano: a merger of strengths

We share a vision and passion for health care

Mission:

Improving people’s lives through meaningful innovation

Vision:

At Philips, we strive to make the world healthier and more sustainable through innovation. Our goal is to improve the lives of 3 billion people a year by 2025. We will be the best place to work for people who share our passion. Together, we will deliver superior value for our customers and shareholders.

Mission:

To improve the lives of patients

Vision:

Through innovation and dedication to our values, we seek to provide the means for superior therapeutic solutions that enable patients to live long fulfilling lives.

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The Volcano Vision

A platform company guiding and optimizing minimally invasive therapies utilizing visualization, physiology, or future technologies

Future

Today

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Volcano targets coronary and peripheral vascular IGIT segments with IVUS and FFR

Source: Volcano management presentation

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Multiple Solutions from Volcano

FFR Co-Reg +

IVUS

iFR® Angio+

CRUX™ VCF

CFR + IVUS

CRUX™

pFFR VCF

Combo Digital Rotational Peripheral Pioneer™

ChromaFlo® VH® IVUS FACT

(Pressure + IVUS IVUS IVUS Plus

Flow)

Pre-Procedure Peri-Procedure Post-Procedure

“FACT” is an acronym for Volcano Corporation’s focused acoustic computed tomography (FACT). Technologies with gray outlines are currently under development and are not commercially available for sale.

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What happens next?

29


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Next steps

1

 

Closing the deal

Q1 2015

Integration of Volcano

After closing the deal

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Questions?

31


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Some iXR announcements

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iXR

January 1st, 2015

Business Leader iXR

Ronald Tabaksblat

Management Assistant

Ann De Wit

Enabling Functions Business Functions MoS Markets

International Business

Finance Marketing Mobile Surgery Leader

Frits van Staa Louise Verheij van Wijk Rekha Ranganathan Sander Verspeek

Cardiology Solutions

HR R&D Leader

Heidi Sichien Harry Berghuis Will Ickenroth

Innovation/Clinical Science

Q&R iXR NA

& Medical Affairs/iBD

Hugo Weusten Perry De Augustine

Nijs van der Vaart

Procurement Operations iXR Greater China

Jeroen Peters John van Soerland Zhang Wei

Business Excellence

Marcel Borger

Services – Jan Windey

Legend

Tier 1

Tier 2

Tier 3

Tier 4

Tier 5

Tier 6

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Realigning marketing organization to better service our customers E2E now and in the future

iXR Marketing Team Mobile Mkt Team

Market & Lifecycle Efficiency Solution Clinical Solutions Strategic Mkt

System NPI Team

Team Team Team Team

1

 

Strengthen the Core

2

 

Develop Solutions

Enter New

3

 

Areas

Customers

Customer segments: Leaders ; Quality Optimizers ;Standardizers & Opportunists ;Economizers & Minimalists

Clinical specialty: Cardio / Vasc / Neuro (Int/Surg)

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iXR Marketing per Jan 2015

iXR Marketing Mobile Mkt Team

Louise Verheij van Wijk Narendra Joshi

Efficiency Strategic

Market & System NPI Team Clinical Solutions

Solution Team Marketing

Lifecycle Team Jan de Jong van Beek Team

a.i. Louise Verheij Louise Verheij van

Sander Verspeek en Donk Ruud Heugen

van Wijk Wijk

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iXR Clinical Science & Medical Affairs per Jan 2015

Clinical Science, Innovation & iBD

Nijs van der Vaart

Interventional Business

Development

Clinical Science Innovation Innovation Innovation XUS NPI

& Medical program IRIS program MIA program program iBD NPI iBD Business

Affairs Robert-jan De I&AI Program Development

Bart Carelsen Erik van Dijk Pauw Ivo Canjels Peter Vogels Mark Mirjam

Steenbakkers Rubbens

Clinical Strategy Clinical Areas Regionals Evidence

Trends & Concept & Regionals & Proof Clinical & Economical

Opportunities Feasibility points Proof points

36


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iXR R&D per Jan 2015

iXR R&D Mobile

Harry Berghuis Radhakrishnan Kodakkal

Program

Management

Ad van der

Stappen

System ICC

PMO MDC IAC PIC

Development Dirk-Jan

Emile Canoy a.i. Harry Berghuis Theo Nanne Chitra Sukumar

Hans Duetz Swagerman

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Questions?

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We are at the heart of the Health Continuum

HealthyLiving Prevention Diagnosis Treatment Recovery Home Care

Imaging Diagnostics & Image-

Guided Therapy

Healthcare Transformation Services

HealthSuite Digital Platform – enabling solutions

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