2. A well-respected, blue-chip company for 120 years Founded in 1891 Headquartered in Amsterdam, the Netherlands Sales over EUR 25.4 billion in 2010 (USD 33.8 billion) 33% of sales generated in emerging markets Globally recognized brand (world top 50) Our brand value doubled to $8.7bln since 2004 119,000 employees Sales and service outlets in over 100 countries € 1.6 billion investment in R&D, 6% of sales 50,000 patent rights – 36,000 registered trademarks – 63,000 design rights
3. Philips defined: we are… “… a global company of leading businesses creating value with meaningful innovations that improve people’s health and well-being .” Health and well-being A commitment to healthy, fulfilled lives in our communities and societies our world Meaningful innovations Improving people’s lives Going beyond technology Introduced at the right time
4. Our focus on Health and Well-being Our portfolio leverages critical global trends Rise of emerging markets Aging population Increased consumer empowerment and sustainable lifestyles Climate change and sustainable development
5. Our Health and Well-being offer is powered by 3 businesses Healthcare Lighting Consumer Lifestyle 2010
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7. Healthcare € 8.6 Billion sales in 2010 35,000+ People employed worldwide in 100 countries 450+ Products & services offered in over 100 countries 1 2010 split 8% of sales invested in R&D in 2010 Philips Healthcare Businesses 1 Sales & services geographies 1 Imaging Systems Home Healthcare Solutions Patient Care and Clinical Informatics Customer Services North America International 45% 35% 20% Emerging Markets 39% 14% 21% 26%
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9. Consumer Lifestyle € 8.9 Billion sales in 2010 17,000+ People employed worldwide € 0.3 Billion negative NOC for TV end 2010 4% of sales invested in R&D in 2010 1 2010 split 2 Other category (4%) is mainly license income and is omitted from this overview Philips Consumer Lifestyle Businesses 1 2 Geographies 1 Personal Care Health & Wellness Domestic Appliances Television Audio Video Multimedia Mature Markets 60% 40% Emerging Markets 13% 7% 17% 36% 13% Accessories 10%
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11. Lighting € 7.6 Billion sales in 2010 53,000+ People employed worldwide in 60 countries 5% of sales invested in R&D in 2010 80,000+ Products & services offered in 2010 1 Indicative split Philips Lighting Customer Segments 1 24% 17% 17% 11% 13% 5% 2% 3% 8% Retail Entertainment Healthcare Automotive Homes Offices Outdoor Industry Hospitality
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14. Creating meaningful innovations Improving lives in new ways Gain deep insights into people’s needs and aspirations by following a process requiring end-user input at every stage Transform insights into innovations by combining the diverse perspectives of different disciplines “ Learn fast, fail cheap” by applying a rigorous process to assess value potential early Lead in open innovation by working closely together with partners in a spirit of open innovation
15. End-user input at every stage of our innovation process Product creation process continues outside-in thinking throughout, with experiential” and “simplicity” testing. Insights on needs and aspirations are gathered by listening, watching and engaging our end-users and customers Multiple solutions are created by in-house Marketing, R&D, and Design teams who collaborate, together with external specialists Conclusions are validated with end-users and customers, both globally and locally.
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18. Philips people High engagement driving productivity High performance benchmark Philips benefits from: A strong leadership team A highly engaged workforce Productivity per employee increased by 20% year on year Employee Engagement Index Philips at high performance norm The 2010 ‘employee engagement index’ polling over 90,000 of the Philips workforce showed we are amongst the world’s top-ranking companies 2010 75 69 64 61 59 2005 2006 2007 2008 68 2009
20. Unique leadership positions in many markets Current NPS leadership positions 1 Regional Cardio vascular Global Patient Monitoring Regional Radiation Oncology Systems Global Ultrasound Regional Cardiac resuscitation Regional Home Healthcare 1 (Co)Leadership is defined as outperforming (>5%) or on par with best competitor, globally or regionally Regional Male electric shaving & grooming Global Mother and Child Care Global Female depilation Global Steam irons Regional Blenders Global Juicers Regional Power Toothbrushes Global High Power LEDs Global Professional Luminaires Global Lighting Electronics Global Lamps Regional Automotive Lighting Regional Consumer Luminaires Healthcare Consumer Lifestyle Lighting 1 (Co)Leadership is defined as outperforming (>5%) or on par with best competitor, globally or regionally
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23. Transforming Philips Profound shift towards health and well-being Healthcare Lighting Consumer Lifestyle 1 Components Semiconductors Origin IT Services Other We have fundamentally simplified our business portfolio, investing proceeds from disposals in our Healthcare, Consumer Lifestyle and Lighting businesses 8% 12% 5% 2% 2000 actual sales split 1 Consumer Lifestyle in 2000 includes the former DAP and Consumer Electronics divisions Last 12 months Sept ’10 2010
24. Becoming a global leader in health and well-being 2001 2007 2010 Towards One Philips Healthcare, Lifestyle & Technology High volume electronics Leading in health and well-being Vision 2010 Healthcare, Lighting & Consumer Lifestyle Leading in health and well-being Vision 2015
