Philips 2008 Annual Report Download - page 15

Philips Annual Report 2008 15
Vision 2010
On December 4, 2008, we confi rmed that we
continue to execute on our Vision 2010 strategy.
However, given the current economic environment,
the fi nancial targets set as part of Vision 2010 are
not expected to be met by the end of 2010, as
originally planned, due to the continuing economic
slowdown and resulting declining demand in key
markets. We remain fully committed to our strategy,
and will update the market on the realization of our
fi nancial objectives when economic visibility improves.
Our ambitions
Our fi nancial targets
Double EBITA per common share from 2007 level •
Group EBITA margin of 10-11%•
Sector EBITA targets:
Healthcare 15-17%
Consumer Lifestyle 8-10%
Lighting 12-14%
Comparable sales growth of 6% average per year •
Return on invested capital of 12-13% •
Our EcoVision4 targets
over the period 2007 - 2012
Double revenues from Green Products to 30% •
of total sales
Double investment in Green Innovations to •
a cumulative EUR 1 billion
Improve our operational energy effi ciency •
by 25% and reduce CO
2 emissions by 25%
Through our strategy, we aim to fuel growth by
making Philips the leading brand in health and
well-being. Our strategy further positions Philips
as a market-driven, people-centric company with
a structure that refl ects the needs of its customer
base, while also increasing shareholder value.
Our ways of working
1
We are a people-centric company that organizes
around customers and markets
2
We invest in a strong brand and consistently deliver
on our brand promise of “sense and simplicity”, in
our actions, products and services
3
We deliver innovation by investing in world-class
strengths in end-user insights, technology, design
and superior supplier networks
4
We develop our people’s leadership, talent and
engagement and align ourselves with high-
performance benchmarks
5
We invest in high-growth and profi table businesses
and emerging geographies to achieve market
leadership positions
6
We are committed to sustainability and focus on
making the difference in effi cient energy use
7
We drive operational excellence and quality to
best-in-class levels, allowing us the above-mentioned
strategic investments in our businesses
Our strategy
122
Performance statements
114
Supervisory Board report
110
Our leadership
94
Risk management
70
Our sector performance