Philips 2009 Annual Report Download - page 97

• Consumer Luminaires: functional, decorative, lifestyle,
scene-setting
• Professional Luminaires: city beautification, road
lighting, sports lighting, office lighting, shop/hospitality
lighting, industry lighting
• Lighting Electronics and Controls: electronic gear,
electromagnetic gear, controls
• Automotive Lighting: car headlights, car signaling,
interior
• Special Lighting Applications: projection,
entertainment, purification, comfort heating, light &
health
• Solid-State Lighting components: LUXEON, SnapLED,
SuperFlux
• Solid-State Lighting modules: modules, retrofits, new
applications
Total sales by business 2009
as a %
Lamps & Lighting
Electronics
51
LED Components/Modules
3
Professional
Luminaires
33
Consumer Luminaires
6
Automotive/Special Applications
7
Our customers are mainly in the professional market. The
Lamps business conducts its sales and marketing activities
through the wholesale, OEM and consumer channels, the
latter also being used by our Consumer Luminaires
business. Professional Luminaires is organized in a trade
business (commodity products) and a project solutions
business (project luminaires and solutions). For the latter,
the main focus is on specifiers, lighting designers,
architects and urban planners. Automotive Lighting is
organized in two businesses: OEM and After-market.
Lighting Electronics and Controls, Special Lighting
Applications and Solid-State Lighting components and
modules conduct their sales and marketing through both
the OEM and wholesale channels.
The lamps industry is highly consolidated, with GE and
Siemens/Osram as key competitors. The luminaires
industry, on the other hand, is more fragmented. Our
competition varies per region and per segment. Our
Lighting Electronics and our Automotive Lighting
businesses are again more consolidated. Chinese
companies are entering Western markets with energy-
saving solutions, and there are a range of companies active
in the transition to solid-state lighting as well as in the
transition to applications and solutions. With the arrival of
LED we are increasingly seeing many other businesses
enter the lighting space, either on the components side or
on the (niche) applications side.
5.4.5 Driving transformation
In 2009 we continued to invest in extending our
technological leadership, through investments in R&D and
acquisitions – controls businesses Dynalite and Teletrol,
LED design company Ilti Luce and luminaire manufacturer
Selecon. At the same time we went to great lengths to
further prepare our organization for the new age of
lighting – which will be all about LED-based solutions. We
undertook significant restructuring and rightsizing efforts
aimed at gearing up our organization to take full advantage
of the LED-driven future opportunities in the lighting
industry and adjusting our cost structure to current
market conditions.
Philips Lighting has manufacturing facilities in some 25
countries in all regions of the world and sales
organizations in more than 60 countries. Commercial
activities in other countries are handled via dealers
working with our International Sales organization. Lighting
has approximately 51,000 employees worldwide.
Lighting strives for compliance with relevant regulatory
requirements, including the European Union’s Waste
from Electrical and Electronic Equipment (WEEE),
Restriction of Hazardous Substances (RoHS), Energy
using Products (EuP) and Energy Performance of Buildings
(EPBD) directives.
With regard to sourcing, please refer to the section
Supply management under section 4.1.14, Performance by
key function, of this Annual Report.
5.4.6 Progress against targets
The Annual Report 2008 set out a number of key targets
for Philips Lighting in 2009. The advances made in
addressing these are outlined below.
Growth
We fuelled future growth by continuing to invest in
acquisitions as outlined above, with particular focus on the
applications and services part of the lighting value chain,
and by continuing to invest in R&D with a specific focus on
further solidifying our leading position in LED.
Segment leadership
With its clear focus on the Office, Outdoor, Industry,
Retail, Hospitality, Entertainment, Healthcare and
Automotive professional segments, as well as Homes in
5 Our sector performance 5.4.4 - 5.4.6
Philips Annual Report 2009 97