Philips 2008 Annual Report Download - page 77

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1,636
2,658
5,517
1,692
2,810
6,013
1,704
3,167
6,562
1,767
3,215
6,638
1,947
419 598 624 653
769
475 565 642 559
675
3,758
7,649
500
444
425
348
329
Sales per market cluster
in millions of euros
Western Europe North America other mature
key emerging other emerging
9,000
6,000
3,000
0
2004 2005 2006 2007 2008
Sales and net operating capital
in billions of euros
Sales NOC
9
6
3
0
5.5
2.6
2004
6.0
3.1
2005
6.6
4.7
2006
6.6
4.8
2007
7.6
8.8
2008
EBIT
a
n
d
EBI
T
A
1)
in millions o
f
euro
s
2004 2005 2006 2007 2008
EBITA in valueEBIT in value EBITA as a % of sales
0
2
50
500
7
50
1,00
0
679 713
537
759
857
614
11.1
12.6
13.1
713
862
13.0
638
863
11.3
Compared to 2007, EBIT declined EUR 75 million
to EUR 638 million.
Cash flow before financing activities included net
payments totaling EUR 3,456 million, mainly for the
acquisitions of Respironics, VISICU, TOMCAT, Dixtal
Biomédica, Shenzhen Goldway, Medel SpA and Alpha
X-Ray Technologies. In 2007, acquisition-related outflows
amounted to EUR 245 million, mainly for the acquisitions
of Health Watch, Raytel Cardiac Services, Emergin and
VMI Sistemas Medicos. Excluding these acquisition-
related outflows, cash flow before financing activities
was EUR 557 million higher than in 2007, largely thanks
to improved working capital requirements, notably
lower inventory.
Regulatory requirements
Philips Healthcare is subject to extensive regulation.
It strives for full compliance with regulatory product
approval and quality system requirements in every
market it serves by addressing specific terms and
conditions of local ministry of health or federal
regulatory authorities, including agencies like the
US FDA, EU Competent Authorities and Japanese
MLHW. Environmental and sustainability requirements
like the European Union’s Waste from Electrical and
Electronic Equipment (WEEE) and Restriction of
Hazardous Substances (RoHS) directives are met
with comprehensive EcoDesign and manufacturing
programs to reduce the use of hazardous materials.
Strategy and 2009 objectives
Philips Healthcare will play an important role in the
realization of Philips’ strategic ambitions. For 2009
and beyond, Healthcare has put in place a number of
specific value-creating initiatives which it will drive
via the axes Drive performance, Accelerate change and
Implement strategy:
Improve margins through acceleration of operational •
improvements
Grow faster than our markets through investments •
in key market segments
Deliver value to our customers and shareholders •
by effective integration of acquisitions
Enhance engagement of our workforce.
•
Revised to reflect immaterial adjustments of intercompany profit
1)
eliminations on inventories.
Philips Annual Report 2008 77
122
Performance statements
114
Supervisory Board report
110
Our leadership
94
Risk management
70
Our sector performance
Healthcare