Philips 2011 Annual Report Download - page 79

6 Sector performance 6.4.1 - 6.4.5
Annual Report 2011 79
around 54,000 patent rights, 39,000 trademarks, 70,000
design rights and 4,400 domain name registrations. Philips
filed approximately 1,450 patents in 2011, with a strong
focus on the growth areas in health and well-being. IP&S
participates in the setting of standards to create new
business opportunities for the Healthcare, Consumer
Lifestyle and Lighting sectors. A substantial portion of
revenue and costs is allocated to the operating sectors.
Philips believes its business as a whole is not materially
dependent on any particular patent or license, or any
particular group of patents and licenses.
Philips Innovation Services was formed in 2011 from parts
of the former Philips Applied Technologies and Philips
MiPlaza. Its mission is to accelerate its customers’
innovations by offering a range of advanced services,
expertise and high-tech facilities across the whole
innovation process: from concept creation, product
development, prototyping and small series production,
quality and reliability, right through to sustainability and
industrial consulting. It serves Philips and its partners, as
well as many non affiliated companies.
Situated at the High Tech Campus Eindhoven, Philips
Innovation Services is an innovation hub supporting
Philips’ long-term commitment to Open Innovation.
Philips Innovation Campus Bangalore (PIC) hosts activities
from all three sectors, Philips Research, IP&S and IT.
Healthcare is the largest R&D organization at PIC, with
activities in Imaging Systems and Patient Care & Clinical
Informatics. Lighting started in mid-2010, and PIC is now
one of its largest software sites. While PIC originally
started in 1996 as a software center, it has since
developed into a product development center (including
mechanical, electronics, supply chain capabilities). In 2011
several Healthcare businesses also located business
organizations focusing on growth geographies at PIC.
6.4.2 Corporate Investments
The last remaining business within Corporate Investments
– Assembléon – was a wholly owned subsidiary that
develops, assembles, markets and distributes a diverse
range of surface-mount technology placement equipment.
In 2011 we sold a majority stake in Assembléon to H2
Equity Partners, an independent private equity firm,
retaining a 20% stake.
6.4.3 New Venture Integration
The New Venture Integration group focuses on the
integration of newly acquired companies across all
sectors.
6.4.4 Philips Design
Philips Design partners with the Philips businesses,
technology groups and corporate functions to ensure that
our innovations are meaningful and locally relevant, and
that the Philips brand experience is preferable and
consistent across all its touch-points. To further maximize
the value that it brings to Philips and strengthen the
alignment with its innovation partners, Design is becoming
a company function. In 2012 the functional transformation
will be completed, with the establishment of fully
integrated Design teams within the sectors.
Philips Design’s creative force is comprised of designers
across various disciplines, as well as psychologists,
ergonomists, sociologists and anthropologists, all working
together to understand people’s needs and desires and to
translate these into relevant solutions and experiences
that create value for people and business. Design’s
forward-looking exploration projects deliver vital insights
for new business development.
Philips Design is widely recognized as a leader in people-
centric design. In 2011, it won 99 key design awards in the
areas of product, communication and innovation design.
6.4.5 2011 financial performance
In 2011, sales were EUR 93 million lower than in 2010,
mainly due to the divestment of Assembléon in the first
quarter of 2011.
EBITA in 2011 amounted to a loss of EUR 382 million,
compared to a loss of EUR 211 million in 2010. The year-
on-year decrease in EBITA was mainly attributable to
higher restructuring costs, one-time pension items and
investments related to the Accelerate! program.
EBITA at Corporate Technologies was EUR 23 million
higher than in 2010, attributable to higher license revenue
and continuous focus on cost efficiency.
Corporate & Regional costs were EUR 15 million higher
than in 2010, attributable to higher restructuring charges
and investments related to the Accelerate! program.
EBITA at Pensions was EUR 123 million lower than in
2010, in part due to that year’s EUR 119 million
curtailment gain, partly offset by a EUR 21 million gain in
2011, due to a plan change in one of our major plans.
EBITA at Service Units and other decreased from a loss
of EUR 106 million in 2010 to a loss of EUR 162 million.
The decrease was largely attributable to legal and
environmental provisions related to discount rate
changes.