Philips 2008 Annual Report Download - page 133

Information by sector and main country
in millions of euros unless otherwise stated
Sectors
sales
research and
development
expenses
income from
operations
income from
operations as a
% of sales
results
relating to
equity-
accounted
investees
cash flow
before
financing
activities
2008
Healthcare 7,649 (642) 638 8.3 6 (2,418)
Consumer Lifestyle 11,145 (407) 265 2.4 −253
of which Television 4,980 (51) (413) (8.3) −(489)
Lighting 7,106 (305) 165 2.3 1 (1,139)
Innovation & Emerging Businesses 337 (268) (226) (67.1) (2) (126)
Group Management & Services 148 −(525) −14 1,824
26,385 (1,622) 317 1.2 19 (1,606)
2007
Healthcare 6,638 (592) 713 10.7 7 236
Consumer Lifestyle 13,330 (492) 832 6.2 2 772
of which Television 6,270 (119) (68) (1.1) −(41)
Lighting 6,093 (276) 675 11.1 −(648)
Innovation & Emerging Businesses 535 (269) (82) (15.3) (9) (164)
Group Management & Services 197 −(297) −763 5,253
26,793 (1,629) 1,841 6.9 763 5,449
2006
Healthcare 6,562 (572) 713 10.9 9 (1,003)
Consumer Lifestyle 13,108 (553) 683 5.2 3 (39)
of which Television 6,559 (114) 155 2.4 −207
Lighting 5,466 (269) 577 10.6 (4) 451
Innovation & Emerging Businesses 1,379 (265) (76) (5.5) (12) (49)
Group Management & Services 167 −(699) −(153) (1,832)
26,682 (1,659) 1,198 4.5 (157) (2,472)
As of January 2008, Philips’ activities are organized on a sector basis, with each operating sector, Healthcare, Lighting and Consumer Lifestyle – being responsible for
the management of its business worldwide. The Healthcare sector brings together the former Medical Systems division and Home Healthcare Solutions (formerly
Consumer Healthcare Solutions) – which has been transferred from Innovation & Emerging Businesses. The former Consumer Electronics and Domestic Appliances
and Personal Care divisions have been integrated in the Consumer Lifestyle sector. As a consequence of the aforementioned, prior-year financials have been restated.
Prior-period Group and Healthcare financials have been revised to reflect immaterial adjustments of intercompany profit elimination on inventory (see Significant
accounting policies, Reclassifications and revisions).
The following sectors are included in the table above: Healthcare, Consumer Lifestyle, Lighting, Innovation & Emerging Businesses (I&EB)
and Group Management & Services (GM&S). A short description of these sectors is as follows:
Healthcare: Consists of the following businesses - Imaging Systems, Clinical Care systems, Home Healthcare Solutions, Healthcare Informatics
and Patient Monitoring, and Customer Services.
Consumer Lifestyle: Consists of the following businesses - Television, Shaving & Beauty, Audio & Video Multimedia, Domestic Appliances,
Peripherals & Accessories, Health & Wellness, and Licenses.
Lighting: Consists of the following businesses – Lamps, Professional Luminaires, Consumer Luminaires, Lighting Electronics, Automotive,
Special Lighting Applications, and Lumileds.
I&EB: Consists of various activities and businesses which mainly support, but are not allocated to, a specific sector. This includes Corporate
Technologies (such as Research, Intellectual Property & Standards, Molecular Healthcare, the Healthcare, Lifestyle and Lighting & Cleantech
Incubators as well as Applied Technologies), Corporate Investments, New Venture Integration, and Design.
GM&S: Consists of the corporate center, as well as the overhead expenses of regional and country organizations. Also included are the costs
of Philips’ global brand campaign and pension and other postretirement benefit costs not directly allocated to the other sectors.
Philips Annual Report 2008 133
254
Corporate governance
250
Reconciliation of
non-US GAAP information
262
Ten-year overview
266
Investor information