Philips 2006 Annual Report Download - page 23

Philips Annual Report 2006 23
Our structure and businesses
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 executive
management of the Company is entrusted to the
Board of Management under the supervision of
the Supervisory Board. The Board of Management
leads the Group as a ‘strategic controller’ and driver
of synergy value. The Group Management Committee,
consisting of the members of the Board of Management
and certain key offi cers, is the highest consultative body
within Philips and the main platform for policy alignment,
deployment and implementation. 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’ activities are organized on a divisional basis,
with each operating division – Medical Systems,
Domestic Appliances and Personal Care, Consumer
Electronics and Lighting – being responsible for the
management of its businesses worldwide. The businesses
are the primary point of accountability and source of
value creation; they are provided with effective and
effi cient support through shared service centers.
Country management supports value creation,
connecting Philips with key stakeholders, especially
its employees, customers, government and society.
At the end of 2006, Philips had approximately
130 production sites in 26 countries, sales and service
outlets in approximately 150 countries, and some
121,700 employees.
As of January 2007, the main activities within the
Other Activities sector have been repositioned as the
Innovation & Emerging Businesses group. By leveraging
Philips’ brand, technology base and distribution network,
the Company aims, through this group, to invest in
projects that are not currently part of its operating
divisions, but which will lead to additional organic growth
or create value through future spin-offs. Innovation
& Emerging Businesses includes Corporate Research,
Philips’ Business Incubators and Intellectual Property &
Standards, as well as Consumer Healthcare Solutions.
Also effective January 2007, the sector Unallocated has
been renamed Group Management & Services, which
includes the global service units, corporate and regional
costs, pension costs and corporate investments in the
Philips brand.
Home Offi ces, industry and sports
amBX
Enhancing the
gaming experience
with real-life effects
Ambilight
Creating a richer, more
immersive infotainment
experience
Innergize
Providing a multi-sensorial
relaxation/revitalization
experience
Dynamic Lighting
Adapting the lighting level and
color temperature to create a
‘natural’ lighting ambience
Whole fruit juicer
Taking the hassle out
of healthy living
54 The Philips sectors 86 Risk management 100 Report of the Supervisory Board 110 Financial Statements