Philips company general presentation

Philips is building the leading company in

health and well-being. We need to define and
articulate to the world, and our employees,
exactly how we will compete and become a
global leader in health and well-being.
To articulate effectively, we need targeted and consistent
messaging to our key stakeholder groups.

Key messages of the presentation are:

Who
Philips a global company of leading businesses

What
Winning now and in the future by repeatedly developing
meaningful innovations based on unique user insights

This presentation is a key component of this communication

effort. It is a general presentation intended to be given by
members of Philips senior management and is targeted to
a general audience.

Where

It is created to be engaging and impactful. Speaker notes

are included and should be utilized as they will enable the
speaker to deliver the presentation in the most effective and
engaging way possible.

By putting our brand promise sense and simplicity

into practice

In the space of health and well-being

How

If you have questions please contact Philips

Corporate Communications.

Building the leading company in

health and well-being
An introduction to Philips

A global company of
leading businesses
creating value with
meaningful innovations
that improve peoples
health and well-being
3

Health and well-being

What do we mean by this?
A commitment to:
healthy, fulfilled lives
our communities and societies
our world
4

Meaningful innovations
What do we mean by this?
improving peoples lives
going beyond technology
introduced at the right time
5

The world needs meaningful

innovations to respond to
todays dramatic global changes

Aging populations
Without changes to the healthcare system, 25% of the working population would
be needed to provide todays level of care by 2040* (*for a typical western healthcare system)

Globalization and the rise of emerging markets

Emerging markets already produce 28% of global GDP

Empowered consumers
Companies need to find new ways of gaining business

Climate change and sustainable development

Almost one-fifth of global electricity consumption is used for lighting

10

an opportunity to work together

to improve the quality of peoples lives and live our brand promise

Energy efficiency
Personalized experiences
Personal well-being
Homecare, independent living
Better healthcare for all, at lower cost

sense and simplicity

What do we mean by this?
advanced
easy to use
designed around you
12

Putting sense and simplicity

into practice in
health and well-being

13

Paramedic
From the onset of a
heart attack to the
start of treatment,
speed is vital
every second counts

15

Cardiologist
How can we
shorten the time
to treatment?

16

Meaningful innovation

Philips HeartStart MRx helps cut

time to treatment by transmitting vital
ECG data directly from the
ambulance en route to the hospital.
Its thanks to HeartStart that Im still
here. I feel Ive been given a second
chance to raise my kids
Most widely recognized and
recommended cardiac emergency
response device worldwide
Part of a complete discovery to
treatment solution
17

Common complaint
I hate waking up on
dark winter mornings:
I feel tired, lethargic
and a bit down

19

Common complaint
Why cant I always
wake up like I do
in summer?

20

Experts
Its all to do with the
intensity of light before
we wake up

21

Meaningful innovation

By emitting light that simulates the

rising sun in your bedroom, Philips
wake-up light gently prepares your
body to wake up.
I immediately noticed a difference
it feels just like waking up naturally
9 out of 10 consumers say it wakes
them up pleasantly
Sales exceeded expectations by 42%
Customers No. 1 preferred product in
its category
22

Office worker
My office lighting is so
harsh and cold. I wish
I could change it

24

Researcher
Light tone and
intensity has
profound effects on
the energy levels of
human-beings

25

Building owner
To attract and
retain good tenants
I need flexible,
high-quality spaces

26

Meaningful innovation
Using the new possibilities offered by
LED lighting, DayWave enables
people to create an inspiring,
enjoyable office environment by
varying the color and intensity of
lighting to suit their mood and activity.

27

Philips the business

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A well-respected, blue-chip
company for over 100 years
Founded in 1891
Headquartered in Amsterdam, the Netherlands

Sales over EUR 23 billion (USD 32 billion)

32% in emerging economies

118,000 employees
Sales and service outlets in over 100 countries

Globally recognized brand (world top 50)

Our brand value doubled to $8.7bln since 2004

1.6 billion investment in R&D, 7% of sales

48,000 patent rights 35,000 registered trademarks
56,000 design rights

Our focus on Health and Well-being

Our portfolio leverages critical global trends

Aging population

Increased consumer
empowerment and
sustainable lifestyles

Climate change and

sustainable development

30

Rise of emerging
markets

Our health and well-being offer

is powered by three sectors

Healthcare

Consumer Lifestyle

Lighting

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Healthcare
Giving people the best healthcare possible

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Healthcare
Giving people the best healthcare possible

Were dedicated to understanding the

challenges people face and helping
them overcome them every day.
We strive to improve the quality of
peoples lives and continue raising
the bar on clinical excellence at lower
cost. Because healthcare simplified
means improving healthcare
for everyone.

People focused.
Healthcare simplified.

33

The power of Healthcare

Further strengthening our global leadership

Clinical care systems

Global market leadership for automated external defibrillators

Home healthcare solutions

No.1 provider of personal emergency response services in the US

Patient monitoring
Leadership position offering significant reduction in mortality and
length of stay in ICUs equipped with VISICU eICU

Imaging systems
Cardiovascular X-ray is no.1 in overall manufacturing satisfaction

Customer services
No.1 in service performance in patient monitoring systems
and ultrasound

Consumer Lifestyle
Making a difference to the way people live their lives

35

Consumer Lifestyle
Making a difference to the way people live their lives

Living well, looking good and

feeling great
Enhancing the home
Sharing life's experiences with family
and friends
Enabling people to live healthier,
more enjoyable and more
rewarding lifestyles

36

The power of
Consumer Lifestyle
Focusing on differentiating leading businesses
Mother and childcare
Philips AVENT is market leader. Its feeding bottles have been
clinically proven to reduce colic*
*At 2 weeks of age, babies fed with the AVENT bottle experienced less colic than babies fed with a conventional bottle

Male electric shaving

No.1, with every second shaver in the world being a Philips shaver

Power toothbrushes
Philips Sonicare is the no.1 recommended sonic toothbrush brand by
dental professionals worldwide

Domestic appliances
Over one million healthy living aluminum Juicers sold since launch

TVs
Philips invented the successful ambilight flat TV concept

Lighting
Simply enhancing life with light

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Lighting
Simply enhancing life with light

Innovating new lighting solutions

based on proven consumer insights.
Global leader in sustainable lighting
projects for cities, offices, workplaces
and homes.
New business areas (e.g. solid-state
lighting) provide energy-efficient
solutions that reduce lightings
environmental impact.

39

The power of Lighting

Further strengthening our global leadership

Lamps
Market leader: 1 out of every 4 lamps used worldwide is a
Philips lamp

Professional luminaires
No.1 lighting 65% of worlds top airports and 30% of offices,
hospitals and landmarks

Consumer luminaires
Market leader and front runner in driving the switch to energy
efficient lighting

LED applications
Strong presence across the complete solid state lighting chain

Automotive lighting
Leads the market, with one-in-three cars worldwide using Philips
automotive lighting

What makes us different

Driven by our brand promise sense and simplicity

Innovation process

Customer relationships

Philips people

Sustainability

Emerging Markets

Leadership positions

41

Creating meaningful innovations

Improving lives in new ways

Gain deep insights into peoples

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

42

Close customer relationships

Creating promoters of our brand

Customer loyalty
is fundamental to growth and profitability

We win the trust of customers

and partners
by understanding and anticipating
their needs
by sharing our insights
by providing the right products
and solutions

We monitor our effectiveness

with the Net Promoter Score based
on a simple question:
would you recommend us to
a friend or colleague?

43

Philips people
Strong leadership, heading a highly engaged workforce

A strong leadership team

formed by diverse top-60 leaders who focus on
managing the current downturn while building
the business for future wins

We live our company values

Delight customers
Develop people
Deliver great results
Depend on each other

A competitive advantage
created by a proven, highly engaged workforce

An eye on the leaders of tomorrow

by nurturing all talent in line with our strategies
we optimize performance, and offer fast-track,
stretch opportunities for top talent

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A strong position in emerging markets

Emerging markets represent 32%

of sales
In Healthcare double-digit growth in sales and
order intake

High corporate brand equity

Consistently among the top-ranking players in
India, China, Russia and Brazil

Championing growth with

dedicated strategies
Based on local market insights, supported by
increased marketing investments

Increasing our footprint

Opened more than 100 exclusively Philips
branded lighting stores in China and India
Established an Imaging Systems Industrial
Campus in Suzhou, China
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Sustainability as a driver for growth

Our commitment
One of the strategic drivers behind our targets is a
commitment to sustainability
Success of EcoVision4 program:
Our Green Product sales represented around 30%
of sales in 2009, 3 years ahead of our 2012 target

EcoVision5 program
Focusing on areas where we believe we can have a
significant impact on the health and well-being of
individuals, communities and governments.

Targets for the period 2010 2015

Bringing care to more than 500 million people
Improving the energy efficiency of Philips overall
portfolio by 50%
Doubling the global collection and recycling
amounts of our products, as well as double the
amount of recycled materials in our products
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We are leaders in many markets

Examples of key leadership positions

Healthcare

Consumer
Lifestyle

Lighting

Cardiovascular
Market
#1 Global,
Cath Labs

Patient
Monitoring
#1 Global,
Critical Care

Male shaving
#1 Global,
Arcitec and
Nivea for men

Professional
Lighting
#1 Global, City
Beautification;
sports lighting

Care and Resuscitation

#1 Global,
AEDs (Automated
External Defibrillators)

Coffee makers
#1 Western
Europe,
Senseo

Consumer
Lighting
#1 Global,
LED-based
luminaires

Rechargeable
toothbrushes
#1 US
# 2 Global,
Flexcare

Lamps
#1 Global,
Energy-efficient
lighting

47

Leading today, into tomorrow

Were a global company of leading businesses

built on sense and simplicity
Strengthened by a growing brand and significant investment in
emerging markets

We provide solutions that improve peoples

health and well-being
A sustainable area of business, driven by
global trends

We do this with a relentless people-focus

Highly engaged Philips people
Strong relationships with customers
Continued creation of meaningful innovations