Philips 2011 Annual Report Download - page 2

2 Annual Report 2011
Contents
Performance highlights 4
Message from the CEO 6
1 Our company 10
2 Our strategic focus 12
3 Our strategy in action 14
3.1 Philips’ China journey – a dynamic partnership 15
3.2 COPD home care solutions: Philips delivers 17
3.3 Global leadership through local relevance 19
3.4 Building a global oral healthcare brand 21
3.5 Innovation bringing city lighting to life 23
3.6 Customer-centric innovation shaping the future of
motoring
25
4 Our planet, our partners, our people 27
4.1 Optimizing our ecological footprint 28
4.2 Partnering to drive change 30
4.3 Our people – making a difference 32
5 Group performance 34
5.1 Management discussion and analysis 35
5.2 Liquidity and capital resources 43
5.3 Other performance measures 48
5.4 Sustainability 51
5.5 Proposed distribution to shareholders 57
5.6 Outlook 58
6 Sector performance 59
6.1 Healthcare 61
6.2 Consumer Lifestyle 67
6.3 Lighting 72
6.4 Group Management & Services 77
7 Risk management 81
7.1 Our approach to risk management and business
control
81
7.2 Risk categories and factors 84
7.3 Strategic risks 85
7.4 Operational risks 86
7.5 Compliance risks 88
7.6 Financial risks 90
8 Management 92
9 Supervisory Board 94
10 Supervisory Board report 96
10.1 Report of the Corporate Governance and Nomination
& Selection Committee
99
10.2 Report of the Remuneration Committee 100
10.3 Report of the Audit Committee 105
11 Corporate governance 107
11.1 Board of Management 107
11.2 Supervisory Board 109
11.3 General Meeting of Shareholders 111
11.4 Logistics of the General Meeting of Shareholders 112
11.5 Investor Relations 113
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 19, 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).