Philips 2010 Annual Report Download - page 14

2 Vision 2015 - our strategic focus 2 - 2
14 Annual Report 2010
Population growth, aging, higher healthcare aspirations and
lifestyle-related diseases mean that healthcare costs will
become unsustainable
Increased welfare and changing lifestyles will drive consumer
focus on health and well-being
The fundamental need to reduce our eco-footprint drives
demand for energy efficiency and sustainability
The lighting industry will face a massive shift from
conventional to digital, dynamic lighting and the entry of
new, non-traditional players
The relative importance of emerging markets in the world
economy continues to rise
Our opportunitiesGlobal trends
Portfolio leverages critical global trends
Fundamental growth trends
• Efficient health diagnostics
and treatment
• Home healthcare
• Healthy lifestyle and
preventive health
• Personal well-being
• Light for health
and well-being
• Energy-efficient lighting
• Emerging markets
• Sustainability
Strengthen existing leadership positions while
expanding promising businesses to become
leaders: In our three sectors, we aim to strengthen our
existing leadership positions while developing promising
businesses to become leaders. In 2015, we want to be the
market share leader in at least half of all our businesses. In
Healthcare, we will further differentiate our portfolio,
continue with our care-cycle approach and expand home
healthcare. In Lighting, we will further strengthen our
leading position in LED to capture the opportunities of a
fast-changing market. In Consumer Lifestyle, we will
continue to expand those businesses that provide higher
growth and profitability potential.
Continued focus on emerging markets: Emerging
markets are becoming more and more important to
Philips. As the number of middle-class households in these
markets grows, we expect demand for our products will
increase as people have more money to spend on feeling
and staying healthy. Therefore, we will continue to focus
on emerging markets by making sure we address local
needs effectively and continue to invest in having the right
capabilities in place to win in these fast-growing
economies. We aim to generate at least 40% of sales in
emerging markets by 2015.
We want to be seen as clear leaders in
sustainability: We are committed to being a leading
company in matters of sustainability. We look at
sustainability through the lenses of our sectors and define
specific ambitions for each of them: bring care to 500
million people; improve the energy efficiency of our
overall portfolio by 50%; double the amount of recycled
materials in our products as well as double the collection
and recycling of Philips products.
Our Vision 2015 aspirations
• Comparable sales growth on annual average basis at
least 2 percentage points higher than real GDP growth
• Reported EBITA margin between 10% and 13% of sales
• Growth of EPS at double the rate of comparable annual
sales growth
• Return on invested capital at least 4 percentage points
above weighted average cost of capital