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PHILIPS Q2 2021 Quarterly report Philips delivers Q2 sales of EUR 4.2 billion , with 9 % comparable sales growth ; net income amounts to EUR 153 million and Adjusted EBITA margin improves 280 basis points to 12.6 % ; company announces EUR 1.5 billion share buyback program Amsterdam , July 26 , 2021 Second - quarter highlights Group sales increased to EUR 4.2 billion , with 9 % comparable sales growth Comparable order intake decreased 15 % , with strong double - digit growth in the Diagnosis & Treatment businesses and a decline in the Connected Care businesses on the back of COVID - 19 - related 167 % growth in Q2 2020 Income from continuing operations decreased to EUR 65 million due to a EUR 250 million provision related to field actions to address a component quality issue . Income from continuing operations was EUR 195 million in Q2 2020 . Adjusted EBITA increased to EUR 532 million , or 12.6 % of sales , compared to EUR 390 million , or 9.8 % of sales , in Q2 2020 • Operating cash flow amounted to EUR 332 million , compared to EUR 446 million in Q2 2020 Free cash flow was EUR 167 million , compared to EUR 212 million in Q2 2020 Frans van Houten , CEO " We have mobilized the necessary resources across the company to address the component quality issue in certain of our sleep and respiratory care products . We fully understand the impact that this is having on patients , as their well - being is at the heart of everything we do at Philips . We are in discussions with the relevant regulatory authorities to obtain authorization to start deploying the repair kits and replacement devices that we are producing . I am pleased with the good performance momentum in all our businesses except the Sleep & Respiratory Care business , as we delivered a strong 9 % comparable sales growth and 280 basis points profitability improvement for the Group in the quarter . I am particularly encouraged by the 29 % order intake growth in our Diagnosis & Treatment businesses , as well as the strong growth of our Personal Health businesses . In the quarter , we introduced exciting innovations , such as the new Spectral CT 7500 to help improve disease characterization and reduce rescans and follow - ups . The integration of BioTelemetry and Capsule Technologies is proceeding well , and our customers appreciate the expanded portfolio of end - to - end patient care management solutions from the hospital to the home . We entered 12 new long - term strategic partnerships , building on the strength of our portfolio and demonstrating the trust hospital leaders have in our ability to enhance health outcomes and lower the cost of care , while improving patient and staff experience . Confident in our strategy and financial trajectory , we are launching a new share buyback program of EUR 1.5 billion in line with our balanced capital allocation policy . Looking ahead , while we continue to see uncertainty related to the impact of COVID - 19 across the world and electronic component shortages , our financial outlook remains within our guided range , with low - to - mid - single - digit comparable sales growth and an Adjusted EBITA margin improvement of 60 basis points expected for the Group in 2021. " Business segment performance The Diagnosis & Treatment businesses recorded 16 % comparable sales growth , with double - digit growth in all businesses . Comparable order intake increased 29 % , with strong double - digit growth in Image - Guided Therapy , Ultrasound and Diagnostic Imaging . The Adjusted EBITA margin increased to 13.2 % , mainly driven by sales growth and productivity measures . Quarterly Report 2021 - Q2 1