Philips 2010 Annual Report Download - page 8

President’s message
8 Annual Report 2010
Net Promoter Score
% of businesses with (co-)leadership
scores
75
50
25
0
50
2007
51
2008
60
2009
59
2010
Increase employee engagement to high-performance level
I am very pleased to say we made significant progress over
the past year. Our overall Employee Engagement Index
score reached 75%, up seven points from the previous
year and one point above the worldwide high-
performance benchmark. At 76%, our People Leadership
Index improved by three points – clear evidence that our
leaders are encouraging interaction and dialog. One of the
most heartening aspects of this year’s results was that the
biggest advances in our scores were in areas identified as
needing improvement in the previous year’s survey. So
our teams’ hard work really paid off. Nevertheless, there
are still parts of the organization where we have a lot of
work to do, and our growth ambitions can only be
realized if we continue to challenge ourselves.
Implement strategy
Increase our market position in emerging markets
We have a strong presence in the emerging economies.
We generate around one-third of our sales there, and aim
to drive this figure up to at least 40% by 2015. To this end,
we continue to invest in building our local organizations,
competencies and resources in these markets.
In China, we made the first shipments from our industrial
campus for imaging systems at Suzhou. Scheduled for
completion in 2012, this state-of-the-art facility expands
our presence in China’s high-growth healthcare market
with a complete portfolio that serves both the needs of
the value segment as well as more advanced specialized
applications.
We also moved the global headquarters of our Domestic
Appliances business to Shanghai – building our business
creation capabilities in this important market and taking a
step toward making China a “home” market.
In 2010, we entered into a full-cycle innovative
partnership with Electron, Russia’s market leader in
developing and manufacturing medical equipment.
Drive key strategy initiatives for each sector
We continued to invest in smaller, but strategically aligned
and fast-growing businesses in 2010. In Healthcare, we
made a series of acquisitions designed to strengthen our
offering in clinical informatics, and in China we acquired
ultrasound equipment manufacturer Shanghai Apex,
enhancing our position in value-segment imaging solutions
for emerging markets. Other acquisitions included Siesta’s
Somnolyzer business, reinforcing our position in sleep
diagnostics and OSA therapy in the strategic growth area
of home healthcare.
We also unveiled our new Imaging 2.0 platform, which is
set to drive innovation and efficiency in radiology. Imaging
2.0 is all about integration and collaboration – and new
levels of patient focus that can help clinicians achieve what
was unimaginable just a few short years ago.
In Consumer Lifestyle, we acquired Discus Holdings, the
leading manufacturer of professional tooth-whitening
products, complementing our existing Sonicare electric
toothbrush portfolio and further building our relationship
with dental professionals.
With regard to Television, we took further action to
reduce our exposure, extending our brand licensing
partnerships with Videocon (India) and TPV (China),
which are both expected to contribute positively in 2011.
In Lighting we continued to drive the transition to LED,
expanding our portfolio of LED-based solutions for both
consumer and professional applications, with sales
growing to 13% of sector revenues.
Value-adding acquisitions in 2010 included iconic Italian
design luminaire brand Luceplan. We also acquired
Burton, a leading provider of specialized lighting solutions
for healthcare facilities, and Amplex’s street lighting
controls activity, supporting growth of our outdoor
lighting business. Toward the end of the year we bought
NCW Holdings, a leading Chinese designer, manufacturer
and distributor of LED and conventional entertainment
lighting and lighting control solutions.
Leverage Sustainability as an integral part of our strategy
In 2010 we increased our Green Product sales to 38% of
Group revenues (far ahead of our 30% target), with strong
contributions from all sectors, Lighting in particular. We
increased the energy efficiency of our operations by 6%
and reduced our operational carbon footprint by 7% – on
track to achieve our EcoVision4 reduction target for
2012. We also developed roadmaps to phase out PVC and
BFR from new consumer products introduced onto the
market in 2011.