Philips 2010 Annual Report Download - page 95

6 Sector performance 6.3 - 6.3
Annual Report 2010 95
6.3 Lighting
“In terms of performance, 2010 was a record year for Lighting, with
significant growth of our top line and our profitability. As an
organization, we are becoming much more customer-centric, and
this is enabling us to capture attractive opportunities in both
professional and consumer markets.” Rudy Provoost, CEO Philips Lighting
€ 7.6 billion
sales 11.5% EBITA as a % of sales € 590 million cash flows before financing activities
• Lighting industry undergoing a radical transformation
•Important global trends underpinning strategy
• Winning in LED
Introduction
A number of global trends are changing the way people
use light. Lighting solutions are transforming urban
environments, creating livable cities through the use of
light to enhance safety, municipal identity and residential
well-being; consumers are increasingly applying lighting to
create their own ambience at home as a statement of their
lifestyle; building owners and retailers are recognizing the
benefits of energy-efficient lighting in reducing their
operational costs; and schools are learning how lighting
can improve education.
At the same time, more and more people are keen to help
tackle the issues of climate change and rising energy costs.
Many countries and regions have introduced legislative
measures to address energy consumption and the
emission of greenhouse gases, which are linked to climate
change. In particular, 2010 saw further legislation to phase
out old, incandescent lighting and other energy-inefficient
forms of electric lighting. Philips will continue to play a
significant role in encouraging and enabling the switch to
energy-efficient lighting solutions, helping our customers
to save on energy costs while making a positive
contribution to the environment.
Another key development is the ongoing trend toward
custom solutions. Increasingly aware of the possibilities
beyond standard solutions, consumers, businesses and
national and municipal authorities demand highly
adaptable lighting solutions which they can use to