Philips 2006 Annual Report Download - page 82

Philips Annual Report 200682 Philips Annual Report 200682
Full or partial divestments
In 2006, Corporate Investments managed to reduce
the portfolio of businesses by full or partial divestment
of the following activities:
Philips Business Communications
The majority share in Philips Business Communications
(60%), a provider of enterprise communication solutions,
was sold to NEC Unifi ed Solutions. A joint venture,
named NEC Philips Unifi ed Solutions, was formed.
Anteryon
In the fi rst quarter of 2006, Anteryon International B.V.
acquired all Philips’ shares in Anteryon B.V. As part of
the transaction, Philips received a 10% stake in Anteryon
International B.V.
Philips Optical Storage
Philips sold its optical pick-up unit business to
Arima Devices in June 2006. As part of the transaction,
Philips received a 12% stake in Arima Devices. Philips
BenQ Digital Storage (PBDS), established in February
2003, has been reorganized. As a result, PBDS has
been deconsolidated.
High-Tech Plastics - Tooling
In July 2006, the High Tech Plastics Tooling business
was sold in its entirety to Varova B.V.
Philips Power Solutions - Inductives
In September 2006, Philips sold part of its Power
Solutions business (Inductives) to Bobinados de
Transformadores S.L.
Philips Advanced Metrology Systems
In October 2006, a majority of Advanced Metrology
Systems was sold to JHW Greentree Capital. Philips
retained a 19.9% stake in the new company called
Advanced Metrology Systems LLC.
Philips Enabling Technologies Group
In November 2006, Philips Enabling Technologies Group
was sold in its entirety to VDL Groep.
Philips Sound Solutions
In December 2006, Philips Sound Solutions activities were
sold in their entirety to D&M Holdings Inc. of Japan.
2006 fi nancial performance
Sales of Corporate Investments declined by 30% in
nominal terms, mainly due to the sale of (parts of)
Optical Storage, Philips Business Communications and
Philips Enabling Technologies Group. Assembléon showed
a sales decline of 3% in nominal and comparable terms.
EBIT of Corporate Investments showed a profi t of
EUR 14 million in 2006, compared to a loss of EUR 58
million in 2005. The improvement was primarily due to
gains on divestments totaling EUR 44 million in 2006,
largely related to the divestment of Philips Sound
Solutions (EUR 43 million). Furthermore, the improved
performance of the main businesses, especially Assembléon
and Philips Enabling Technologies Group, contributed to
the result.
In 2006, Corporate Investments successfully divested
the majority of its business portfolio, notably the Optical
pickup and Data units, Philips Business Communications,
Philips Enabling Technologies Group and Philips Sound
Solutions. The divestments within Corporate Investments
resulted in a positive cash fl ow of EUR 127 million and
a total transaction gain of EUR 44 million.
Other
The remaining businesses of Other Activities comprise the
Global Service Units, Philips Design, Supply Management
and other businesses that do not fi t into other sectors.
Global Service Units
The realization of Philips’ Global Service Units
strategy is enabling the company to achieve signifi cant
organizational synergies. Standard business solutions have
been implemented that help Philips to respond better
and faster to changes in the corporate and business
environment and to deliver on its commitment to
“sense and simplicity”.
The global support functions comprise Finance, Human
Resources, Information Technology, non-product-related
Supply Management, Real Estate and Facilities Management.
By realizing the concept of company-wide standard
services, Philips has become leaner and more focused
on its business objectives and growth ambitions. The
Global Service Units employ around 4,500 people.
6 Financial highlights 8 Message from the President 14 Our leadership 20 The Philips Group