Philips 2010 Annual Report Download - page 2

2 Annual Report 2010
Contents
Performance highlights 4
President’s message 6
1 Our company 11
2 Vision 2015 - our strategic focus 13
3 Our strategy in action 15
3.1 Professional Healthcare 15
3.2 Home Healthcare 20
3.3 Healthy Life & Personal Care 23
3.4 Home Living & Lifestyle Entertainment 27
3.5 Home Lighting 31
3.6 Professional Lighting 35
4 Our planet, our partners, our people 40
4.1 Climate change 40
4.2 Our environmental footprint 43
4.3 Partnerships for progress 46
4.4 Supplier sustainability 49
4.5 Working at Philips 52
4.6 Working in our communities 55
5 Group performance 58
5.1 Management discussion and analysis 58
5.2 Liquidity and capital resources 66
5.3 Other performance measures 71
5.4 Sustainability 74
5.5 Proposed distribution to shareholders 79
5.6 Outlook 80
6 Sector performance 81
6.1 Healthcare 83
6.2 Consumer Lifestyle 89
6.3 Lighting 95
6.4 Group Management & Services 101
7 Risk management 104
7.1 Our approach to risk management and business
control
104
7.2 Risk categories and factors 107
7.3 Strategic risks 108
7.4 Operational risks 109
7.5 Compliance risks 111
7.6 Financial risks 112
8 Board of Management 116
9 Group Management Committee 118
10 Supervisory Board 119
11 Supervisory Board report 120
11.1 Report of the Corporate Governance and Nomination
& Selection Committee
123
11.2 Report of the Remuneration Committee 124
11.3 Report of the Audit Committee 129
12 Corporate governance 131
12.1 Board of Management 131
12.2 Supervisory Board 133
12.3 General Meeting of Shareholders 135
12.4 Logistics of the General Meeting of Shareholders 136
12.5 Investor Relations 137
IFRS basis of presentation
The financial information included in this document is based on IFRS, unless
otherwise indicated.
Forward-looking statements and other information
Please refer to chapter 20, Forward-looking statements and other
information, of this Annual Report for more information about forward-
looking statements, third-party market share data, fair value information,
IFRS basis of preparation, use of non-GAAP information, statutory financial
statements and management report, and reclassifications.
Dutch Financial Markets Supervision Act
This document comprises regulated information within the meaning of the
Dutch Financial Markets Supervision Act (Wet op het Financieel Toezicht).
Statutory financial statements and management report
The chapters Group financial statements and Company financial statements
contain the statutory financial statements of the Company. The introduction
to the chapter Group financial statements sets out which parts of this Annual
Report form the Management report within the meaning of Section 2:391 of
the Dutch Civil Code (and related Decrees).