Philips 2005 Annual Report Download - page 51

Philips Annual Report 2005 51
FEI Company
FEI Company is a US-based company in which Philips holds
25% of the outstanding shares. FEI is the leading supplier
of Structural Process Management TM solutions to the
world’stechnologyleadersintheeldsofsemiconductors,
data storage and biological structures.
Taiwan Semiconductor Manufacturing Company
Taiwan Semiconductor Manufacturing Company (TSMC)
is the world’s largest dedicated semiconductor foundry,
providing the industry’s leading process technology and
largest portfolio of process-proven library, IP, design tools
andreferenceows.
In the third quarter of 2005, Philips sold 568 million
common shares, representing 2.6% of its stake in TSMC.
Philips retains a holding of 16.4% in TSMC, representing
4,066 million shares. As of January 2006, the Philips
representation on the TSMC board was reduced, resulting
inthelossofsignicantinuence,andthereforePhilips
will cease using the equity method of accounting as of
that date.
NAVTEQ
In the second quarter of 2005, Philips sold all its remaining
shares of common stock in NAVTEQ. As a result, Philips’
37.1% interest in NAVTEQ was reduced to zero.
Atos Origin
In July 2005, Philips sold its remaining 15.4% stake in Atos
Origin. Philips no longer has a stake in Atos Origin.
TPV Technology
In September 2005, Philips sold part of its monitor
andentry-levelatscreenTVbusinesstoTPVTechnology.
The combination of TPV and Philips’ monitor and entry-
levelatTVbusinesscreatedagloballeaderinthe
monitorsandatTVassemblymarket.Inreturnforthe
activities transferred to TPV, Philips became a substantial
shareholder of TPV with a stake of 15%, and received a
convertible bond of EUR 220 million.
Mobile Display Systems
In November 2005, Philips signed a binding letter of intent
to merge its Mobile Display Systems (MDS) business unit
with Toppoly Optoelectronics Corporation of Taiwan.
The new company will be named TPO. Upon completion
of the transaction, Philips is expected to hold a stake of
approximately 17.5% in TPO. In anticipation of regulatory
approval of its intended merger with Toppoly, MDS is
reported as a discontinued operation.
Corporate Venturing
By year-end 2005 the Corporate Venturing portfolio
comprised some ten companies in which Philips has a
minority stake. Where appropriate, new equity interests
in ventures are negotiated exclusively as part of a broader
partnership arrangement between Philips business units
and emerging technology companies. Ownership of these
minority stakes lies with the respective operating divisions.
Alliances
Philips participates in various strategic alliances. In 2005 an
alliance was formed with Schering to research, develop
and commercialize medical equipment and associated
contrastagentsforopticalimaging.Therstdevelopment
project focuses on mammography.
Furthermore, Philips announced partnerships with
Premiere in Germany, Canal+ in France and UPC in
theNetherlandstoboostthetake-upofhigh-denition
television in Europe.
Growth in traditional businesses sometimes requires
partnerships in complementary industries to open up new
market and product opportunities. An example of this kind
of partnership is the alliance with Sara Lee/DE for the
Senseo coffee experience. Philips has an alliance with InBev
forthePerfectDraftin-homebeersystem.Philipsrst
introduced the PerfectDraft in the fourth quarter of 2004.
Some new technologies need implementation of a larger
‘ecosystem’ and therefore alliances with a variety of
companies in the value chain are required. An example
istheallianceconcerningRadioFrequencyIdentication
(RFID) technology with Atos Origin and Checkpoint to
drive item-level RFID adoption with major retailers.
Another example is the Near-Field Communication (NFC)
Forum founded by Philips, Sony and Nokia, which in 2005
received further support from leading companies like
Visa, Samsung, Texas Instruments and Microsoft.
In the healthcare area, Philips and healthcare insurer
Achmea agreed to jointly execute a pilot to evaluate an
interactive, personalized healthcare communication
platform that connects chronic heart failure patients at
home to their care provider via their television.