Philips 2010 Annual Report Download - page 6
Download and view the complete annual report
Please find page 6 of the 2010 Philips annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2 -
3 -
4 -
5 -
6 -
7 -
8 -
9 -
10 -
11 -
12 -
13 -
14 -
15 -
16 -
17 -
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97
-
98
-
99
-
100
-
101
-
102
-
103
-
104
-
105
-
106
-
107
-
108
-
109
-
110
-
111
-
112
-
113
-
114
-
115
-
116
-
117
-
118
-
119
-
120
-
121
-
122
-
123
-
124
-
125
-
126
-
127
-
128
-
129
-
130
-
131
-
132
-
133
-
134
-
135
-
136
-
137
-
138
-
139
-
140
-
141
-
142
-
143
-
144
-
145
-
146
-
147
-
148
-
149
-
150
-
151
-
152
-
153
-
154
-
155
-
156
-
157
-
158
-
159
-
160
-
161
-
162
-
163
-
164
-
165
-
166
-
167
-
168
-
169
-
170
-
171
-
172
-
173
-
174
-
175
-
176
-
177
-
178
-
179
-
180
-
181
-
182
-
183
-
184
-
185
-
186
-
187
-
188
-
189
-
190
-
191
-
192
-
193
-
194
-
195
-
196
-
197
-
198
-
199
-
200
-
201
-
202
-
203
-
204
-
205
-
206
-
207
-
208
-
209
-
210
-
211
-
212
-
213
-
214
-
215
-
216
-
217
-
218
-
219
-
220
-
221
-
222
-
223
-
224
-
225
-
226
-
227
-
228
-
229
-
230
-
231
-
232
-
233
-
234
-
235
-
236
-
237
-
238
-
239
-
240
-
241
-
242
-
243
-
244
-
245
-
246
-
247
-
248
-
249
-
250
 |
 |
President’s message
6 Annual Report 2010
President’s message
“We posted our best earnings margin in a decade, and retained our
strong balance sheet.” Gerard Kleisterlee, President
€ 25 billion
sales 10%
EBITA as a % of sales 59%
(co-) leadership Net Promoter Score
Dear stakeholder
2010 was a year in which you saw Philips rebounding
strongly from the decline caused by the global financial
crisis in 2009. Within the constraints of a much weaker
economy we successfully implemented a major part of our
Vision 2010 strategic plan, rounding out our
transformation into a customer-focused, market-driven
health and well-being company with a strong brand. We
announced our new plan, Vision 2015, setting out the
roadmap to growth. And we posted our best earnings
margin in a decade, while retaining a strong balance sheet
supported by robust cash flows from operating activities.
However, economic recovery and consumer confidence
remained fragile in 2010, particularly in mature markets.
Following a strong rebound in the first six months of the
year, sales growth slowed in the second half, ending at
10% nominal for the full year. This growth was driven by all
operating sectors, particularly Lighting, and our growing
presence in emerging markets. On a comparable basis,
sales were up 4.3% for the year.
We also recorded an EBITA margin of 10.0%, meeting our
Vision 2010 target. I am especially pleased to report that
this profitability improvement was driven by all our
operating sectors, in particular Lighting, conclusively
demonstrating the value of our portfolio. Our return on
invested capital rose to 11.7%, compared to a cost of
capital slightly in excess of 8%, putting us on the right path
to achieve our Vision 2015 goals. And building upon that
momentum, we continued to make strategically aligned
acquisitions in each sector – no fewer than 11 in total.
During 2010 we also made good progress with the
deployment of our EcoVision5 program. We brought care
to the lives of some 420 million people, improved the