Philips 2005 Annual Report Download - page 28

Philips Annual Report 200528
Information on the Philips Group
Our structure
Koninklijke Philips Electronics N.V. (the ‘Company’ or
‘Royal Philips Electronics’) is the parent company of the
Philips Group (‘Philips’ or the ‘Group’). Its shares are
listed on the stock markets of Euronext Amsterdam and
the New York Stock Exchange. The management of the
Company is entrusted to the Board of Management under
the supervision of the Supervisory Board. The Group
Management Committee, consisting of the members of
the Board of Management, chairmen of the operating
divisionsandcertainkeyofcers,isthehighestconsultative
body within Philips, and its tasks are to ensure that business
issues and practices are shared across Philips, to implement
common policies and to foster the spirit of collaboration
required to unlock Philips’ full potential. Philips addresses
its overall corporate governance structure in the chapter
Corporate governance that begins on page 218.
The Supervisory Board has decided to propose to the
2006 General Meeting of Shareholders to appoint the
current CEOs of the operating divisions as members
of the Board of Management, effective April 1, 2006.
Our businesses
For over 110 years Philips has been improving people’s
lives with pioneering innovations. In 1891 the Company
was founded to manufacture cost-effective, reliable light
bulbs. Today, Philips lights world-famous landmarks like the
Pyramids of Giza, the Golden Gate Bridge and the Times
Square New Year’s Eve Ball. The Company produced test
television signals in 1925 and demonstrated television to
the public in 1928, 21 years before the Dutch government
ofciallyintroducedtelevisiontothepublic.Philipsinvented
the compact audio tape cassette in 1963 to set a global
standard for tape recording. In 1972 the Company produced
theworld’srstvideocassetterecorderforhomeuse.In
1983, Philips launched the Compact Disc and revolutionized
the way the world listened to music. In 1998, Philips acquired
ATL Ultrasound, marking the beginning of a three-year
acquisition period that made the Company one of the
largest medical technology companies in the world. In 2003,
Philips was awarded the No. 1 ranking in its market sector
intheDowJonesSustainabilityIndex.Thisreectsthe
Company’s world-class leadership in social, economic and
environmental responsibility. Today, Philips is committed to
building upon this heritage to improve the quality of life in
the 21st century.
Philips’ activities are organized on a divisional basis (see
diagram), with each division being responsible for the
management of its businesses worldwide.
For a further description, see page 29 to 49 of this
Annual Report. The Management discussion and analysis
chapter begins on page 68. For a discussion of the cash
owfrominvestingactivities,includingcapitalexpenditures,
see the section starting on page 94. Further detailed data
onthenancialperformancecanbefoundinthesection
that begins on page 124.
Philips engages from time to time in cooperative activities
with other companies. The performance of unconsolidated
companies has a major impact on the performance of
the Philips Group. Strategic alliances are also important
to Philips. For more information, please refer to the
section Our cooperations that begins on page 50 of
this Annual Report.
In total, at the end of 2005, Philips had approximately
135 production sites in 32 countries, sales and service
outlets in approximately 150 countries, and some
159,000 employees.
Other
Activities
Medical
Systems
Lighting Consumer
Electronics
Domestic
Appliances
and
Personal
Care
Semiconductors Philips