Philips 2007 Annual Report Download - page 14

Vision 2010 – ambition to signicantly
increase shareholder value
Improve the EBITA margin of our current businesses •
to exceed 10% by year-end 2010
Through improved margin management, increased
contribution from recent acquisitions, a better
product mix, the effects of the organizational
simplication and reduced corporate brand spend.
Drive comparable sales growth at a minimum of 6% •
(compound annual growth rate) for the period
2008-2010
Fuelled by organic growth, and through a specic focus
on emerging markets and developing economies.
Arrive at an efcient balance sheet by the end of 2009 •
Through a combination of further value-creating
acquisitions and continued return of capital to
shareholders.
Thanks to the combined effect of these measures,
we expect EBITA per common share to more than
double by 2010 from the 2007 level.
98 Risk management 112 Our leadership 116 Report of the Supervisory Board 126 Financial Statements
Management Agenda 2008
As a result of a thorough review of our 2007
achievements and remaining challenges, as well as our
expectations for the development of the global economy
and the competitive environment, we have adopted the
following management agenda for 2008:
Integrate and leverage recent acquisitions, delivering •
the anticipated return on investment
Take decisive steps to structurally deal with •
unsatisfactory EBITA margins at Connected Displays
Improve productivity as a driver of margin expansion•
Step up resource investment in emerging markets •
to accelerate growth in excess of 2x GDP
Increase innovation focus in support of Philips’ •
growth ambition
Continue to drive a culture of superior customer •
experience
Bring employee engagement to high-performance •
benchmark
Philips Annual Report 2007 17
As we strive to enhance the quality of people’s lives,
our 7 strategic drivers are helping us become a simpler,
stronger and better company.