Philips 2007 Annual Report Download - page 78

Philips Annual Report 200784
Progress against targets
In the Annual Report 2006, Lighting identied a number
of key objectives for 2007. The progress made in addressing
these is discussed below.
Emerging markets
We continue to build on our strong position in key
emerging, fast-growth markets, such as Latin America,
China, the Indian subcontinent, Central and Eastern Europe
and the ASEAN zone, which together now account for
37% of Lighting sales. In these markets, our comparable
growth in 2007 was 16%.
Developing our distribution networks in these countries
continues to receive our full attention. In China, for example,
we are expanding our distribution network to second
and third-tier cities, of which there are some 660 with
populations of between half a million and two million.
In 2007, we added 8,000 outlets (or 30 per day), giving
a total of 11,600. We expect this gure to rise to 18,700
by the end of 2008. Our China Sourcing Group, formed
in 2004 as a Lighting entity to facilitate our businesses’
sourcing from China through one window, is on course
to deliver USD 1 billion supply value by 2010.
Energy-efcient lighting solutions
In 2007, Lighting built on its strong position in the value
chain towards professional end-users and consumers,
especially by drawing attention to the worldwide energy
and climate-saving opportunity offered by our energy-
efcient lighting. Our new innovative lighting solutions
can realistically save up to 40% energy on all today’s
installed lighting, whether outdoors, in ofces or shops,
or in the home. At the same time they offer a clear
improvement in the quality of the light.
Saving 50% on energy costs and creating a safer environment,
over 50,000 Philips CosmoPolis street lighting systems
have already been installed in 50 cities in Europe,
and interest is increasing in Asia, and particularly China,
where energy-efcient products already represent 44%
of our total Lighting sales.
The switch-over rate to energy-efcient lighting, however,
is still too low given the energy-saving opportunity. We are
working hard to remove the obstacles to accelerating this
switch-over via awareness campaigns (public and private),
supporting new legislation (e.g. energy certication for
buildings) and partnerships (public, private, non-government
At the Dutch coastal town of Breskens, the promenade is
now lit by a combination of Philips’ CitySoul luminaires and
CosmoPolis light sources. Road safety, energy efciency, respect
for the environment and aesthetics were key considerations
for the new lighting scheme.
8 Financial highlights 10 Message from the President 16 The Philips Group 62 The Philips sectors
Lighting