2. A strong diversified industrial group leading in health and well-being “… a global company of leading businesses creating value with meaningful innovations that improve people’s health and well-being .” Founded in 1891 Headquartered in Amsterdam, Netherlands Sales of €22.3 billion in 2010 1 Growth Markets 32% of 2010 sales generated in growth markets Globally recognized brand (world top 50) Our brand value doubled to $8.7bn since 2004 2 120,000 employees Sales and service outlets in over 100 countries € 1.5 billion investment in R&D, 7% of sales Who we are Our businesses Our mission 2010 Healthcare Lighting Consumer Lifestyle 2 Source: Interbrand 1 Note - All figures from the year 2010 onwards exclude Television as it is treated as discontinued operation
3. Healthcare € 8.6 Billion sales in 2010 36,000+ People employed worldwide in 100 countries 450+ Products & services offered in over 100 countries 1 Last twelve months June 2011 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% 34% 21% Growth Markets 38% 14% 22% 26%
4. Consumer Lifestyle € 5.8 Billion sales in 2010 17,000+ People employed worldwide 5% of sales invested in R&D in 2010 1 Last twelve months June 2011 2 Other category (6%) is mainly license income and is omitted from this overview Note - All figures exclude discontinued operations 34% of green product sales in 2010 Philips Consumer Lifestyle Businesses 1 2 Geographies 1 Personal Care Health & Wellness Domestic Appliances Lifestyle Entertainment Mature Markets 60% 40% Growth Markets 21% 12% 27% 34%
5. Lighting € 7.6 Billion sales in 2010 54,000+ 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 23% 17% 15% 10% 15% 5% 3% 4% 8% Retail Entertainment Healthcare Automotive Homes Offices Outdoor Industry Hospitality
6.
7.
8. 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
9. 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.
10.
11. Unique leadership positions in many markets Examples of current NPS leadership positions 1 Global Cardiovascular X-ray Global Ultrasound Global Patient Monitoring Regional Cardiac resuscitation Regional (USA) Home Monitoring Global Male electric shaving Global Mother and Child Care Regional (China) Haircare Regional (LatAm, China) Kitchen Appliances Global Oral Healthcare Global Professional Luminaires Global General Illumination LED Global Professional Lamps Healthcare Global Automotive Lighting Consumer Lifestyle Lighting 1 Leadership is made up of outright leadership (outperforming the best competitor by >5%) and co-leadership (on par with best competitor, within 5%), globally or regionally Global Lighting Systems & Controls
12.
13. 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
15. Healthcare Consumer Lifestyle Lighting Semiconductors Our growing portfolio in health and well-being Portfolio now consists of ~65% B 2 B businesses June ’11 last twelve months 16% 22% 30% 26% 40% 34% 2008 2005 17% 43% 45% 27% Healthcare Lighting Consumer Lifestyle Semiconductor Healthcare Lighting Consumer Lifestyle excl. TV Healthcare Lighting Consumer Lifestyle 1 Consumer Lifestyle in 2005 includes the former DAP and Consumer Electronics divisions 2 2005 figures are based on US GAAP 3 Figures exclude Television as it is treated as discontinued operation 3 2 1
