Philips 2006 Annual Report Download - page 71

Download and view the complete annual report

Please find page 71 of the 2006 Philips annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 244

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189
  • 190
  • 191
  • 192
  • 193
  • 194
  • 195
  • 196
  • 197
  • 198
  • 199
  • 200
  • 201
  • 202
  • 203
  • 204
  • 205
  • 206
  • 207
  • 208
  • 209
  • 210
  • 211
  • 212
  • 213
  • 214
  • 215
  • 216
  • 217
  • 218
  • 219
  • 220
  • 221
  • 222
  • 223
  • 224
  • 225
  • 226
  • 227
  • 228
  • 229
  • 230
  • 231
  • 232
  • 233
  • 234
  • 235
  • 236
  • 237
  • 238
  • 239
  • 240
  • 241
  • 242
  • 243
  • 244

Philips Annual Report 2006 71
Regulatory requirements
CE’s processes and products need to comply with the
relevant regional or national regulatory requirements.
Such legislation includes the EU WEEE (Waste from
Electrical and Electronic Equipment) Directive and the
RoHS (Restriction of Hazardous Substances) Directive.
Strategy and 2007 objectives
CE is committed to value creation. Creating value
depends not only on leveraging the strength of CE’s
asset-light and agile operating model, but also on driving
differentiation in the marketplace. For 2007 and beyond
CE will pursue value creation through Growth, Talent
and Simplicity:
Growth
Deliver sustainable performance: deliver negative
net operating capital and an EBITA of around 3% while
living up to commitments on sustainability and quality
Harness recommended brand: CE will increasingly
focus on driving Net Promoter Scores across all key
categories, processes, functions and units
Drive relevant innovation: develop innovative
propositions that speak to the hearts and minds
of targeted consumers
•
•
•
Talent
Inspire transformational leadership: seek out
opportunities to become the leadership benchmark
in the industry
Simplicity
Exploit opportunities to add signifi cantly to Philips’
brand value through products, services and the way
CE interacts and communicates with its consumer
and customer base.
•
•
Philips Annual Report 2006 71
Sales and net operating capita
l
i
n
b
illi
o
n
so
f
eu
r
os
Sa
l
es
NOC
12
1
0
8
6
4
2
0
(2)
9.9
0.0
2002
9.2
(0.1)
2003
9.9
(0.2)
2004
10.4
(0.3)
2005
10
.
6
(0.2)
2006
Earnings before interest and tax (EBIT)
i
n milli
o
n
so
f
eu
r
os
EBIT
as a % of sale
s
600
500
400
3
00
2
00
100
0
208
2.1
2002
248
2.7
2003
370
3.7
2004
506
4.9
2005
4
1
6
3.9
2006
54 The Philips sectors
Consumer Electronics
86 Risk management 100 Report of the Supervisory Board 110 Financial Statements