Philips 2005 Annual Report Download - page 32

Philips Annual Report 200532
innovation, however, is also dependent on governments
thatstronglyinuencethevolumeofprocedureswiththeir
reimbursement schemes.
Foundations for further growth
Foundations have been laid for further growth, with
improved operational processes and strengthening of
the supply chain. Improvements have been made through
continued cost reductions, further integration of the supply
base,lowerITcostsandastrongerfocusonprotable
growth. A strong position in healthcare IT is being built
through the partnership with Epic Systems (established in
2003) and by the acquisition of Stentor, which has afforded
Philips a prominent position in PACS.
Strategy and objectives for 2006 and beyond
Philips Medical Systems aims to establish and maintain
global leadership positions in enabling systems and
technologies for patient-focused care. The transformation
from stand-alone clinical functionalities to a total ‘care cycle’
strengthens relationships with healthcare professionals
and consumers.
Potential growth areas in the individual businesses reveal
opportunitiestofurtherincreaseprotability,andspecic
expansionoptionshavebeenidentied.
Key targets are:
to change the future of patient care through innovative
care cycle solutions;
to build and leverage healthcare IT to create the
integrated digital hospital of the future;
to continue to grow faster than the market;
to improve the EBIT margin by 1-2% over the next
few years.
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Domestic Appliances and Personal Care
Philips DAP offers consumers exciting experiences to
help them look, feel and live better. It brings to market
technologically advanced products that are designed
around the consumer and are easy to use. The origins of
DAP go back as far as 1950, when the management of
Philips decided to create a new division around its
Philishave shaver, which had been introduced in 1939.
Today, DAP offers a wide range of products that help people
prepare tasty food and beverages, take care of their homes
and garments, and enhance their appearance and sense of
well-being. In short, products designed to improve people’s
quality of life – every day.
DAP is engaged in the development, manufacturing and
marketing of innovative domestic and lifestyle appliances
throughitsvebusinessunits*–Shaving&Beauty,Oral
Healthcare, Food & Beverage, Home Environment Care
and Consumer Health & Wellness. In its drive to offer
consumers appealing value propositions, DAP also partners
withleadingcompaniesfromothereldsinorderto
deliver exciting appliance/consumable combinations.
The division employs over 8,000 people worldwide and
has its own sales organizations in more than 60 countries.
* As of January 1, 2006, the business groups Food & Beverage and
Home Environment Care have merged into one business group
named Domestic Appliances.
Information on the Philips Group
Domestic Appliances and Personal Care
Ten million… and rising
The ground-breaking Senseo coffee system from
Philips and Sara Lee/DE has taken the market by
storm, impressing consumers with its combination of
sensational-tasting coffee, cool design and advanced
but easy-to-use technology. Since its launch �ust four
years ago, a phenomenal ten million appliances have
been sold in eight countries.