Philips 2006 Annual Report Download - page 73

Philips Annual Report 2006 73
and leveraging the key competencies of, all the businesses.
The focus is on cross-business market segments, with
a strategic
segment marketing team established to defi ne
new growth
opportunities and develop new concepts
for the division.
Progress on objectives
In the Annual Report 2005, Lighting identifi ed
a number of key objectives for 2006. The progress
made in addressing these is discussed below.
Build on strong position in the value chain
In 2006, Lighting built on its strong position in the value
chain towards professional end-users in Europe through,
among others: the CosmoPolis street lighting system;
the ‘Transitions: Light on the move’ roadshow, which
illustrated how Philips can help architects and interior
designers enhance architecture with lighting; AmbiScene,
a fl exible shop
lighting concept designed to help retailers
Philips Lighting is the global market leader, with recognized
expertise in the development, manufacturing and application
of innovative lighting solutions. The sector pioneered
many of the key breakthroughs in lighting technology,
creating a solid basis for both its present activities and
future aspirations. Through its expertise and in-depth
understanding of the customer and the end-user, the
division is an innovator in lighting and a shaper of the
lighting industry landscape. As stated in its mission,
Philips Lighting understands people and improves
their lives with lighting.
Lighting consists of the following businesses: Lamps,
Luminaires, Lighting Electronics, Automotive Lighting,
Special Lighting Applications, Solid-State Lighting Modules
and Lumileds. The full range of products includes
incandescent and halogen lamps, compact and normal
fl uorescent lamps, high-intensity gas-discharge and special
lamps, luminaires, electromagnetic and electronic ballasts
and solid-state components, modules and systems.
Lighting’s products are found everywhere, throughout
the home and in professional applications – at work, on
the move, in shops, in the city, hospitals, stadiums, etc.
The division has manufacturing facilities in 25 countries,
and sales organizations in more than 60. Commercial
activities in other countries are handled via dealers
working with the division’s International Sales organization.
Lighting has more than 47,000 employees worldwide.
Major developments
In 2006, Lighting continued to strengthen its
performance and increased its market share. In June,
it entered the emergency lighting market by acquiring
The Bodine Company – a US-based lighting manufacturer.
In November, it announced the planned acquisition of
Partners in Lighting International (PLI), the leading
European manufacturer of home luminaires. This
acquisition, which was completed on February 6, 2007,
is a strategic move designed to strengthen Lighting’s
presence in the home lighting market, where solid-state
lighting will bring major benefi ts in terms of creating
atmospheres and reducing energy consumption.
Lighting has initiated a project to further simplify and
streamline the organization in order to shape itself
for future growth. Part of this project is the re-design
of the marketing organization and way of working,
leading to a single marketing strategy aligned across,
The Philips Actilume lighting control system has the potential
to save up to 75% of the energy consumed by older fl uorescent
lighting installations. This state-of-the-art system is easy to install
and does not require bulky operating manuals – a simple touch
of a button suffi ces.
54 The Philips sectors
Lighting
86 Risk management 100 Report of the Supervisory Board 110 Financial Statements