Philips 2007 Annual Report Download - page 86

Philips Annual Report 200792
Corporate Investments
Divested activities
In line with Philips’ strategy to reduce its portfolio of non-
core, strategically unaligned activities, most of the remaining
activities within Corporate Investments were divested
in the course of 2007.
Philips Power Solutions – Supplies
Philips Power Solutions – Supplies develops and markets
integrated modules for electronic power conversion
and has some 85 employees; sold to Bobinados de
Transformadores S.L.
Ommic
Ommic develops, produces and markets Low Noise
Ampliers, smart antenna core chips and epitaxy/
foundry services and has some 70 employees; sold
to Financière Victoire SAS of France.
Philips Optical Storage – Optical Media & Technology
Optical Media & Technology, part of Optical Storage, is
engaged in the development and verication/certication
of formats/standards in optical media and the development
and marketing of test disks and has some 55 employees;
sold to MoserBaer.
Philips Optical Storage – Automotive Playback Modules
Automotive Playback Modules develops and markets
playback modules for the automotive industry and has
some 1,600 employees; sold to LiteOn IT Corporation.
Remaining activities
As of the end of 2007, Corporate Investments consists
of Assembléon and High-tech Plastics – Optics.
Assembléon
Assembléon is a wholly owned subsidiary that develops,
assembles, markets and distributes a diverse range
of surface-mount technology placement equipment.
Its customers use Assembléon machines to place surface-
mount devices and other electronic components on printed
circuit boards. Assembléon employs some 750 people,
mainly in the Netherlands.
High-tech Plastics – Optics
High-tech Plastics – Optics develops, manufactures and
markets high-end plastics, opto- and opto-mechanical
products. It employs some 360 people, almost all in China.
In 2008, Corporate Investments will be repositioned as
the New Venture Integration Group, which will focus on
the integration of newly acquired companies across all
sectors.
2007 nancial performance
As a result of the portfolio clean-up within Corporate
Investments, sales declined by EUR 930 million, or 78%,
in 2007. Adjusted for portfolio changes (81%) and
unfavorable currency movements (4%), comparable
sales increased by 21%, which was almost entirely
attributable to Assembléon.
EBITA in 2007 amounted to a loss of EUR 4 million.
This included a total loss of EUR 4 million on the
divestment of the remaining activities within Philips
Optical Storage (Automotive Playback Module), Philips
Business Communication in China and Ommic, whereas
2006 included gains on divestments totaling EUR 44 million.
Philips Design
Philips Design is one of the largest and longest-
established design organizations of its kind in the world.
It is headquartered in Eindhoven, the Netherlands, with
branch studios in Europe, the USA and Asia Pacic.
Its creative force of some 550 professionals contains
more than 30 different nationalities, embracing disciplines
as diverse as psychology, cultural sociology, anthropology
and trend research in addition to conventional design-
related skills.
Philips Design works according to a proprietary
methodology known as High Design. High Design is
completely human-focused and research-based, and
always uses a deep understanding of people’s needs as
the starting point for the design process. It also provides
the framework for translating these insights into
imaginative yet feasible solutions.
In this way Philips Design is an important driver in making
the Philips brand promise of “sense and simplicity” tangible.
Philips believes it is only by appreciating the values and
motivations of end-users that it can create sustainable
propositions that are simple to experience and enrich
the quality of people’s lives.
8 Financial highlights 10 Message from the President 16 The Philips Group 62 The Philips sectors
Innovation &
Emerging Businesses