Philips 2007 Annual Report Download - page 55

Philips Annual Report 2007 61
98 Risk management 112 Our leadership 116 Report of the Supervisory Board 126 Financial Statements
With our portfolio restructuring nearing completion,
and having once again delivered on our targets, we
look forward with condence. 2008 is going to be a
challenging but exciting year for Philips – one in which
we expect to take further solid steps towards achieving
our Vision 2010 objectives.
The successful integration of acquisitions will be high
on the management agenda for 2008. We completed
the Genlyte acquisition in late January 2008 and expect
to complete the announced acquisition of Respironics in
the early part of this year. Following the completion of
these acquisitions, we will be in a position to inform
the market on the contribution of the sectors to the
realization of our Vision 2010 plans; this will include
our objective for return on invested capital.
We also expect to make substantial progress towards
achieving an efcient balance sheet, which we will
continue to base on an A-/A3 credit rating with both
our rating agencies. We plan to continue the responsible
sell-down of our remaining stakes during the year and we
expect that our recently announced EUR 5 billion share
repurchase program will be largely completed by the
end of 2008.
While we recognize the market’s caution on 2008
macro-economic developments – particularly in North
America and Europe – we are condent that our
sustained growth in the emerging markets, a strong
innovation pipeline, a balanced portfolio and synergies
from our acquisitions will allow us to continue on our
improvement path through 2008 and to meet our targets
as set out in Vision 2010.
Amsterdam, February 18, 2008
Board of Management
Outlook