Philips 2006 Annual Report Download - page 75

Philips Annual Report 2006 75
business, accounting for approximately 46% of sales,
while the fast-growing Lumileds business accounted for
6%. The remaining businesses each generated between
10 and 20% of sales.
2006 fi nancial performance
Full-year sales at Lighting grew by 8% on a comparable
basis and 14% in nominal terms. All businesses contribut-
ed to the sales growth, led by Luminaires (strong growth
in the offi ce building segment, especially in Europe, as
well as in solid-state lighting) and Automotive Lighting.
diodes), especially high-power LEDs. A new production
facility in Singapore will increase production capacity to
meet the growing demand, particularly for applications
such as fl ashes for mobile phones and car headlighting.
The acquisition of Partners in Lighting International will
further expand the home lighting portfolio to include
solutions based on solid-state lighting. Lighting plans to
further strengthen its position in the solid-state lighting
market across the full value chain of LED components,
modules and systems, while also developing and investing
in new OLED and solid-state laser activities.
Promoting energy effi ciency
If all existing lighting systems were replaced by energy-
effi cient lighting solutions, it could save EUR 53 billion
on worldwide electricity costs per year, which would
cut CO2 emissions by 296 million tonnes per year. This
is equivalent to 779 million barrels of oil per year. As
part of its strategy to build on its strength in energy-
saving solutions, Lighting is promoting energy-effi cient
lighting systems to all stakeholders in the value chain
to make them aware of the potential savings. Philips’
CosmoPolis street-lighting system, for example, is more
than twice as effi cient to run as older mercury-vapor lamps,
while containing industry-leading low levels of mercury
and providing a signifi cantly better quality of light.
Investing in safer driving
At its competence center in Aachen, Germany, Lighting
invested approximately EUR 30 million in 2006 to increase
production capacity for Xenon automotive headlights.
This will strengthen the division’s leadership position
in this market. Xenon headlighting lamps produce three
times as much light but consume 50% less energy than
traditional halogen headlights. They increase safety for
drivers by offering greater visibility and illuminating
whatever is ahead on the road – obstacles, signs, others
vehicles, pedestrians or cyclists – much sooner. Xenon
lighting also offers mercury-free and lead-free products
to a car industry which is becoming increasingly aware
of the need for such environmentally friendly solutions.
Markets
Sales at Lighting continued to be relatively well balanced
across the different geographic regions. In particular, the
emerging markets, including Russia, China, India and the
ASEAN countries, performed well and posted strong
growth. On the product axis, Lamps remained the largest
As an Offi cial Partner of the 2006 FIFA World Cup™, Philips
was involved in the tournament at many levels. The company’s
innovative capability meant fans around the world were able to
experience watching football in a new dimension: High Defi nition.
With resolution roughly fi ve times higher than the current
television standard, it truly is a viewing experience beyond
compare. Installed at eight of the twelve venues where games
were played, Philips’ ArenaVision sports lighting system provided
the necessary quality of light for such high-level TV coverage and
helped to create a more exciting atmosphere inside the stadium.
54 The Philips sectors
Lighting
86 Risk management 100 Report of the Supervisory Board 110 Financial Statements