Philips 2007 Annual Report Download - page 72

Philips Annual Report 200778
CE complies with all relevant regulatory requirements,
most notably the EU WEEE (Waste from Electrical
and Electronic Equipment) Directive and the RoHS
(Restriction of Hazardous Substances) Directive.
With regard to sourcing, please refer to the business
description of Philips Supply Management that begins
on page 96 of this Annual Report.
Progress against targets
With value creation – and margin management – our
main objective, our 2007 activities centered on leveraging
the strength of our asset-light operating model, as well
as driving differentiation in the marketplace.
Growth
We achieved 1% comparable sales growth, with 9%
comparable growth in the second half of the year.
This overall growth was supported by double-digit growth
with our top eight retail accounts. We maintained our
strong relationships with major retailers, driving greater
customer intimacy and dedication through a combination
of more efcient distribution models, increased application
of category management, and closer co-operation on supply
chain management.
Overall, the consistent delivery of solid nancial results
has supported the strategic ambitions of sustainable
performance through CE’s asset-light operating model
(including minimal to negative net operating capital
levels) and an EBITA of around 3%.
Our Peripherals & Accessories business grew further
with
the acquisition of the US-based Digital Lifestyle
Outtters (DLO), a leading supplier of computer and
digital music player accessories. Over the past years the
Peripherals & Accessories organization has established
a successful track record of integrating such acquisitions
quickly and effectively. Along with its acquisition program,
Peripherals & Accessories’ organic growth has beneted
from the application of innovative brand alliances, such
as the Philips-Swarovski Active Crystals range and the
assortment of accessories for Nokia mobile phones.
8 Financial highlights 10 Message from the President 16 The Philips Group 62 The Philips sectors
Consumer Electronics
Having passed the milestone of selling its one millionth
Digital PhotoFrame, Philips has launched a new range
of the stylish, high-resolution digital picture displays.
The 2007 collection includes 5.6-inch and 10-inch models
capable of storing up to 1000 images.