Philips 2007 Annual Report Download - page 196

Philips Annual Report 2007202
Information by sectors and main countries
in millions of euros unless otherwise stated
Sectors
sales
research and
development
expenses
income from
operations
income from
operations as a
% of sales
results relating
to equity-
accounted
investees
cash ow
before nancing
activities
2007
Medical Systems 6,470 (574) 742 11.5 7 409
DAP 2,968 (161) 513 17.3 − 415
Consumer Electronics 10,362 (327) 312 3.0 2 339
Lighting 6,093 (282) 618 10.1 − (644)
Innovation & Emerging Businesses 703 (597) (136) (19.3) (9) (440)
Group Management & Services 197 − (556) − 884 5,373
Inter-sector eliminations − 324 − − − −
26,793 (1,617) 1,493 5.6 884 5,452
2006
Medical Systems 6,448 (517) 780 12.1 9 (417)
DAP 2,532 (154) 370 14.6 − (287)
Consumer Electronics 10,576 (392) 299 2.8 3 248
Lighting 5,466 (262) 516 9.4 (4) 451
Innovation & Emerging Businesses 1,493 (587) (164) (11.0) (12) (625)
Group Management & Services 167 − (844) − (135) (1,832)
Inter-sector eliminations − 309 − − − −
26,682 (1,603) 957 3.6 (139) (2,462)
2005
Medical Systems 6,013 (511) 698 11.6 12 518
DAP 2,194 (118) 340 15.5 − 384
Consumer Electronics 10,422 (416) 425 4.1 2 548
Lighting 4,775 (192) 500 10.5 20 (236)
Innovation & Emerging Businesses 1,905 (591) (195) (10.2) (8) (96)
Group Management & Services 136 − (262) − 2,253 1,736
Inter-sector eliminations − 292 − − − −
25,445 (1,536) 1,506 5.9 2,279 2,854
The years 2005 and 2006 have been restated to present the MedQuist business as a discontinued operation. As of January 2007, the following key portfolio changes have
been applied to the Philips Group structure: Other Activities was renamed Innovation & Emerging Businesses; Unallocated was renamed Group Management & Services;
GSU activities and Miscellaneous were transferred from Innovation & Emerging Businesses to Group Management & Services; Consumer Healthcare Solutions was moved
from DAP to Innovation & Emerging Businesses. Also, of January 2007, certain Corporate/Regional/Country overhead and Corporate Intellectual Property costs were allocated
to the operating divisions to further improve transparency of the total cost structure. As a consequence of the aforementioned, prior-year nancials have been restated.
The following sectors are distinguished as reportable segments: Medical Systems, Domestic Appliances and Personal Care (DAP), Consumer
Electronics (CE), Lighting, Innovation & Emerging Businesses (I&EB) and Group Management & Services (GMS). A short description of these
sectors is as follows:
Medical Systems: Supplier of Imaging Systems, Ultrasound & Monitoring systems, Healthcare Informatics and Customer Services.
DAP: Markets a wide range of products in the areas of Shaving & Beauty, Domestic Appliances, Health & Wellness and Oral Healthcare.
CE: Provider of Connected Displays, Entertainment Solutions, Peripherals & Accessories, Home Networks, and Optical Licenses.
Lighting: Consists of the following lines of business – Lamps, Luminaires, Lighting Electronics, Automotive, Special Lighting & UHP and Lumileds.
I&EB: Comprises various activities and businesses not belonging to a specic sector. It consists of Corporate Technologies (such as Research,
Intellectual Property & Standards, Applied Technologies and the Healthcare, Lifestyle and Technology Incubators), Corporate Investments and Other.
GMS: Includes overhead expenses in the corporate center and the cost of regional and country organizations. Also included are the costs
of Philips’ global brand campaign as well as pension and other postretirement benet costs not directly allocated to the other sectors.
128 Group nancial statements 188 IFRS information
Information by sectors and main countries
240 Company nancial statements