Philips 2010 Annual Report Download - page 236

18 Investor Relations 18 - 18.1
236 Annual Report 2010
18 Investor Relations
The goal of our Investor Relations department is to
provide easy access to information on Philips in a
transparent, accurate and timely manner to shareholders
and bondholders, in compliance with the latest
requirements of national and international disclosure
regulations. This should enable investors to make
informed investment decisions.
18.1 The Philips
investment
proposition
Our strategy
Philips is a leading company in health and well-being. The
year 2010 was a significant year for our company. It
signaled the completion of our Vision 2010 strategic plan,
where we achieved most of our objectives. Based on
these successes, we have now built a solid platform, from
which we have developed our plans for the next five
years. Our Vision 2015 strategic plan is based on five
critical global trends. We believe that the following
growth drivers:
• Accessible Healthcare: driven by population growth,
aging, and higher healthcare aspirations
• Consumer focus on health and well-being: led by
increased prosperity and changing lifestyles
• Energy-efficient lighting solutions: enabled by a massive
shift from conventional to digital, dynamic lighting
• Expanding emerging markets: growing in relative
importance in the world economy
• Sustainability: the fundamental need to reduce our
environmental footprint, which will enhance the drive
for energy efficiency
will enable Philips to achieve its growth and profitability
ambitions.
Our leading and focused portfolio is aligned to these
global trends, as evidenced by:
Our Healthcare business, which is a world leader in many
areas including cardiovascular X-ray, patient monitoring
and home healthcare, which we see playing an increasingly
important role in the years ahead. Equally, our Consumer
Lifestyle business is built on a portfolio of leading
businesses – including male shaving, oral healthcare, and
mother and childcare. We are the world’s largest Lighting
company with a leading position in LED lighting solutions –
the future of this industry. We will continue to leverage
our brand, with its promise of “sense and simplicity”, our
rich technological heritage and our advanced insight into
the needs of end-users to bring meaningful innovation to
our customers.
This is solidly complemented by our long-standing, strong
presence in emerging markets, which already contribute a
third of our revenues, with the target to take this figure to
at least 40% by 2015.
Our financial targets Vision 2015:
• 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,
of which:
- Healthcare 16-18%
- Consumer Lifestyle 9-11%
- Lighting 12-14%
• 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
Sustainability
We seek to make constant progress in the sustainability of
our business. A clear example of how we are driving
business growth through sustainability is evidenced by the
achievement of most of our EcoVision4 objectives, well
ahead of schedule. Based on this we have further
enhanced our objectives by launching our EcoVision5
program.