Philips 2007 Annual Report Download - page 83

Philips Annual Report 2007 89
Corporate Technologies
Corporate Technologies feeds the innovation pipeline,
enabling its business partners – Philips divisions and external
businesses – to improve their time-to-market and innovation
effectiveness, and thus achieve protable growth.
It includes Corporate Research, Philips’ Incubators,
Intellectual Property & Standards, campuses in India
and China, as well as Applied Technologies.
Corporate Technologies supports Philips’ operating
divisions in turning innovations into advanced products,
creating company-wide technology synergies through its
shared labs and competencies. The High Tech Campus in
Eindhoven, Netherlands, and the Philips Innovation
Campus in Bangalore, India and Shanghai, China are
prime examples of this approach.
Innovations are developed in close interaction with
end-users and partners, in order to ensure that as well as
being advanced, they are designed around users’ needs and
are easy to experience. Corporate Technologies reaches
out to others in the innovation eco-system through
relationships with institutes, academia and industrial
partners, as well as via European and regional projects
and presence at clinical sites. By adopting an Open Innovation
strategy, Corporate Technologies also leverages the
joint innovative power of its partners to bring more
innovations to market faster and more effectively.
Corporate Technologies invests in new business
opportunities as well as in building world-class
competencies and technologies that are essential for the
Philips businesses, but also provides these to external
customers, in order to realize maximum return on
investment. Technologies and applications are made
available in the form of patent and technology licenses,
software and hardware components, prototypes,
competencies and services (design, system integration,
Introduction
In 2007 this sector comprised Corporate Technologies,
Corporate Investments, Design and Consumer
Healthcare Solutions. The latter – renamed Home
Healthcare Solutions – became part of the Healthcare
sector as of January 1, 2008.
Key data
in millions of euros
2005 2006 2007
Sales 1,905 1,493 703
Sales growth
% decrease, nominal (18) (22) (53)
% increase (decrease), comparable (5) (9) 32
EBIT (165) (94) (101)
as a % of sales (8.7) (6.3) (14.4)
EBITA Corporate Technologies (108) (91) (76)
EBITA Corporate Investments/ Other (57) 17 (5)
EBITA CHS − (2) (2)
EBITA (165) (76) (83)
as a % of sales (8.7) (5.1) (11.8)
Net operating capital (NOC) 226 748 1,001
Cash ows before nancing activities (96) (625) (348)
Employees (FTEs) 15,130 9,852 7,638
For a reconciliation to the most directly comparable US GAAP measures,
see the chapter Reconciliation of non-US GAAP information.
In 2007 this sector – previously reported under the
heading Other Activities – was positioned as Innovation
& Emerging Businesses, reecting Philips’ ambition for
future growth. By leveraging its brand, technology, IP base
and distribution network, Philips invests, through this
sector, in projects that are not currently part of the
operating divisions, but which will – Philips believes –
lead to additional organic growth or value creation
through future spin-offs.
98 Risk management 112 Our leadership 116 Report of the Supervisory Board 126 Financial Statements