Philips 2006 Annual Report Download - page 13

Philips Annual Report 2006 13
I would like to take this opportunity to thank the
employees of our former Semiconductors division
for all the effort they put into our company over the
years. Saying goodbye is never easy, but I am convinced
that under the inspiring leadership of Frans van Houten
and his team they too are entering an exciting new
era that will bring considerable success.
I would also like to thank Jouko Karvinen, who left the
company in December, for his substantial contribution
in building up our healthcare activities over the last few
years. I wish his successor, Steve Rusckowski, good luck
with the next phase of growth and expansion
at Medical Systems.
Lastly, on behalf of my colleagues on the Board of
Management, I would like to express my thanks to you,
our shareholders, for the support you continue to give
us. I am delighted we have again been able to increase
the value of your company – also with our ongoing share
repurchase and cancellation program – and to raise
the dividend once again. I also wish to thank our other
stakeholders, and in particular our customers, for the
trust they have placed in us, as well as our employees
for their unstinting efforts over the past year.
Gerard Kleisterlee
President
The 15 simplicity-led design concepts that were
demonstrated illustrate the progress we are making
across the company in designing and developing solutions
that meet the everyday needs of end-users, enabling
them to benefi t from new technology and innovations.
Moving forward, we will continue to reduce complexity,
not only in our products and services, but also in our
market focus and the way we work.
Management Agenda 2007
Our management agenda for this year again comprises
a number of clearly defi ned goals and actions aimed
at increasing shareholder value:
Maintain annual average sales growth of 5-6% and
achieve above 7.5% EBITA
Continue to redeploy capital in a disciplined way
through value-creating acquisitions, share buy-backs
and dividends
Drive a culture of superior customer experience by
delivering on the brand promise and implementing
the Net Promoter Score measure in the company
Be an exciting place to work and bring employee
engagement to a high-performance benchmark level
within 2 to 3 years
This agenda refl ects our focus on securing sustainable
profi table growth. Underpinning this, we will continue
to drive forward our talent and simplicity programs.
I believe that with full and effective implementation
of our plans, 2007 will see us continue to grow and
deliver value – in every sense of the word.
•
•
•
•
54 The Philips sectors 86 Risk management 100 Report of the Supervisory Board 110 Financial Statements