philips vision and mission, how company made turnaround, information about different verticals of company

1. Sense and Simplicity
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2.  Koninklijke Philips Electronics N.V. (Royal Philips Electronics
Inc.),
 The foundations of Philips were laid in 1891 when Anton and
Gerard Philips established Philips & Co. in Eindhoven, the
Netherlands.
 The company begun manufacturing carbon-filament lamps
 By the turn of the century, had become one of the largest
producers in Europe.
 Philips’ first research laboratory started introducing its first
innovations in the x-ray and radio technology.
 For years, the list of inventions has only been growing to include
new ideas that have continued to enrich people’s everyday lives.

3.  Strive to make the world healthier and more sustainable
through innovation.
 Goal is to improve the lives of 3 billion people a year by
2025.
 To be the best place to work for people who share same
passion.
 Deliver superior value for customers and shareholders.
 Create value through company’s capabilities to
develop deep understanding of customers’ needs
 Apply advanced technologies to create innovative
solutions

4.  Improving people’s lives through meaningful
innovation.
 Keep innovation at as core of all activities
 New application, a new business model or a unique customer
proposition brought about by an innovative partnership is also
a innovation.
 Aim to help Philips grow by delivering innovations that really
make a difference to people
 Creating and developing ideas and technologies that lead to
successful products is very important
 Think about creating complete solutions.

5. Problems
Philips was success since its
inception, but it faced poor financial
performance during the 1990s due to
the following reasons :
 High manufacturing costs
 Lack of competitive product price
 Growing competition and Rapid
changes in the external environment.

6. Solutions
 Philips embarked an improvement program called
BEST (Business Excellent through Speed and
Teamwork).
 And also used several tools and approaches as a part
of BEST.
Some of them were :
 Philips Business Excellence Model (PBE)
 Process Survey Tools (PST)
 Balanced Scorecard (BSC)

7.  Philips Lighting is a leading provider of solutions and
applications for both professional and consumer markets.
 With the new lighting technologies, such as LED
technology, and the increasing demand for energy efficient
solutions, Philips will continue shaping the future with
ground-breaking new lighting applications.
 Demand for (energy-efficient) lighting in emerging markets
continues to grow
 - Future LED solutions: application IP and luminaries will be
essential
City Beautification Automotive Lighting Energy Saving Lighting

8.  Today, Philips is one of the biggest global players in
consumer lifestyle in terms of turnover.
 Insightful understanding of people, extraordinary
competence in technology and design,
 The many synergies within company's channels, partners
and supply chain.
 Philips delivers deeper experiences in touch with the
social and emotional needs of customers in their homes:
from a cup of coffee in the morning, to a relaxing evening
with an Aurea TV.
 Philips products are designed around their users and aim
to improve people’s lives – every day.

9.  Philips Healthcare sector is dedicated to providing solutions
designed around the needs of customers and patients.
 A belief that Philips can make a difference by removing
boundaries in healthcare with innovative and affordable
technology solutions throughout the entire care cycle.
 Combining unique clinical expertise with human insights to
develop solutions that deliver value throughout the care
cycle:
 From disease prevention to screening and
diagnosis, through to treatment, monitoring and health
management – wherever care is given: in the hospital or at
home.

10.  Equal highest-ever placing (41st) on the annual Interbrand
ranking of the world’s most valuable brands
 Philips named ‘Supersector leader’ in the Dow Jones
Sustainability Index for the second consecutive year
 Philips won a record-breaking number of 124 design awards
in 2012
 UK consumer magazine Which? ranked Philips kettles, irons
and Gaggia espresso machines #1 for reliability
 CityTouch online outdoor lighting management system
honoured as a top sustainable solution at Rio+20 United
Nations Conference on Sustainable Development

11.  Globally, Philips derives 34 per cent of its
revenues from lighting, in India, the figure is
58 per cent.
 In health care, the global contribution is 40
per cent. In India, it is 18 per cent.
 In consumer lifestyle, the company gets 26 per
cent of its overall revenues, in India, it is 24
per cent.
 Totally the Indian unit closed the fiscal ended
March 2012 with revenues of Rs 5,579
crore, growing at a clip of about 23 per cent
per annum.
 Analysts say that Philips is likely to retain this
pace of growth this year too on the back of
double-digit growth that the three core
segments are seeing.

17. Financial table
all amounts in millions of euros unless otherwise stated
2010 2011 2012
Sales 22287 22579 24788
EBITA 2556 1680 1502
as a % of sales 11.5 7.4 6.1
EBIT 2074 -269 1030
as a % of sales 9.3 -1.2 4.2
Net income (loss) 1448 -1291 231
per common share in euros:
- basic 1.54 -1.36 0.25
- diluted 1.53 -1.36 0.25
Net operating capital 11897 10372 9307
Free cash flows 1358 -104 1723
Shareholders' equity 15007 12316 11140
Employees at December 31 119775 125241 118087
of which discontinued operations 3610 3353 0

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