Philips 2006 Annual Report Download - page 74

Philips Annual Report 200674
create inspiring and meaningful shopping experiences;
supplying the lighting
for eight of the twelve stadiums
used for the 2006 FIFA World Cup™ in Germany; and
fostering acceptance of solid-state lighting through major
projects such as the illumination of the Bosphorus Bridge
and Buckingham Palace.
Expand further in the fast-growing
emerging economies
Lighting operates on a global scale and has been rapidly
expanding into the fast-growing emerging economies such
as Brazil, Russia, India, China and the ASEAN countries,
with 31% of 2006 sales coming from emerging countries.
Lighting is expanding its reach into the second-tier cities
and rural areas of countries like India and China through
new dedicated distribution activities and collaboration
with local suppliers. In China, the division is also increasing
its investment in research and development, tapping into
the country’s substantial innovation resources to create
products for both the Chinese market and other regions.
Growth with leading key accounts
In 2006, Lighting strengthened its relationship with global
accounts in its OEM, wholesale and retail business. For
its UHP (Ultra-High Power) lamp for digital projection,
Lighting developed multifunctional, multicultural account
teams that can offer customers end-user insights combined
with the professionalism of a top component supplier.
Teaming up with other Philips divisions resulted in
a stronger proposition for retail customers.
Display lighting
Over the past decade, Philips has pioneered the digital
projection market with its UHP lighting system, fi rst
for professional applications and then for backlighting
projection TVs. The market for rear-projection TV is
under pressure due to the growth in the large-screen
LCD and Plasma TV market. The UHP system will be
further developed in personal projection products. The
introduction of Aptura LCD backlighting technology is
seen in the industry as a major improvement in picture
performance. Taking into account other market
developments, the market acceptance of this LCD
backlighting technology will defi ne the direction
to be taken in the course of 2007.
Strengthening solid-state lighting
Solid-state lighting is a relatively new technology, which
is widely recognized as the future of lighting. Through its
Lumileds Lighting business, Philips has a leading position
in the fast-growing market for LEDs (light-emitting
“In our pursuit of sustained profi table
growth, we believe that we can fulfi l
our ambitions while at the same time
serving the greater good: with energy
demand and costs rising, and lighting
consuming about 20% of global
electricity, we have made energy-
effi cient technologies a priority.”
Harry Verhaar,
Senior Marketing Manager, Lamps Europe
Philips’ energy-effi cient lighting solutions are helping reduce
energy consumption and CO2 emissions. In 2006, many cities
around the world opted for CosmoPolis street lighting to save
energy and improve light quality. In the US, Philips is helping
consumers inspired by the documentary ‘An Inconvenient Truth’
to replace traditional bulbs with more effi cient compact
fl uorescent lamps. Around the world, the company is involved in
initiatives to educate young people about energy saving.
6 Financial highlights 8 Message from the President 14 Our leadership 20 The Philips Group